Significant insider control over Ming Yuan Cloud Group Holdings implies vested interests in company growth
A total of 6 investors have a majority stake in the company with 52% ownership
Recent purchases by insiders
Every investor in Ming Yuan Cloud Group Holdings Limited (HKG:909) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 45% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Notably, insiders have bought shares recently. Their expectations, however, were not satisfied, as the market cap dropped to HK$3.2b over the past week.
In the chart below, we zoom in on the different ownership groups of Ming Yuan Cloud Group Holdings.
What Does The Institutional Ownership Tell Us About Ming Yuan Cloud Group Holdings?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Ming Yuan Cloud Group Holdings does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Ming Yuan Cloud Group Holdings' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Ming Yuan Cloud Group Holdings. Our data suggests that Yu Gao, who is also the company's Top Key Executive, holds the most number of shares at 20%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. For context, the second largest shareholder holds about 12% of the shares outstanding, followed by an ownership of 8.7% by the third-largest shareholder. Note that two of the top three shareholders are also Senior Key Executive and Member of the Board of Directors, respectively, once again pointing to significant ownership by company insiders.
We did some more digging and found that 6 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Ming Yuan Cloud Group Holdings
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own a reasonable proportion of Ming Yuan Cloud Group Holdings Limited. Insiders have a HK$1.4b stake in this HK$3.2b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 37% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Company Ownership
Our data indicates that Private Companies hold 4.0%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Ming Yuan Cloud Group Holdings better, we need to consider many other factors. Take risks for example - Ming Yuan Cloud Group Holdings has 3 warning signs we think you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
明元雲グループ・ホールディングスには、機関投資家が投資しており、彼らは企業の株式の大部分を保有しています。これは、企業が投資コミュニティに一定の信頼性を示していることを示唆することができます。ただし、機関投資家が持ち株の正当性を示す前提に依存することには注意が必要です。彼らも時には間違います。複数の機関が同時に株式の見解を変更する場合、株価が急落する可能性があるため、注意が必要です。したがって、Ming Yuan Cloud Group Holdingsの売上履歴を以下に示します。勿論、実際の将来が重要です。
ヘッジファンドがMing Yuan Cloud Group Holdingsに意味のある投資をしていないことに注目します。弊社のデータによると、同社の最高幹部でもある高雨氏が株式の20%を所有しており、最も多く所有している人物であることが分かりました。内部関係者が企業の株式の相当量を所有している場合、それは内部関係者が今後の企業の将来に財産を拘束する意思があることを示唆しているため、投資家にとっては好ましい兆候と見なされます。コンテキストとして、2番目に大きな株主が発行済み株式の約12%を所有しており、3番目に大きな株主が8.7%の所有権を持っていることが分かりました。上位3分の2の株主のうち、2人がそれぞれ最高幹部と取締役会メンバーであることにも注目し、企業内部関係者による大規模な所有権を示しています。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。