ME Therapeutics Holdings Inc.'s (CSE:METX) most bullish insider is CEO Salim Dhanji, and their holdings value went up by 14% last week

Key Insights

• Insiders appear to have a vested interest in ME Therapeutics Holdings' growth, as seen by their sizeable ownership
• A total of 4 investors have a majority stake in the company with 65% ownership
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in ME Therapeutics Holdings Inc. (CSE:METX) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 64% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit CA$210m market cap following a 14% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about ME Therapeutics Holdings.

Check out our latest analysis for ME Therapeutics Holdings

What Does The Lack Of Institutional Ownership Tell Us About ME Therapeutics Holdings?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of ME Therapeutics Holdings, for yourself, below.

ME Therapeutics Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Salim Dhanji with 17% of shares outstanding. The second and third largest shareholders are John Priatel and Kenneth Harder, with an equal amount of shares to their name at 17%. Interestingly, the third-largest shareholder, Kenneth Harder is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

On looking further, we found that 65% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of ME Therapeutics Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders own more than half of ME Therapeutics Holdings Inc.. This gives them effective control of the company. So they have a CA$134m stake in this CA$210m business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in ME Therapeutics Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with ME Therapeutics Holdings (including 2 which shouldn't be ignored) .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

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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.