Insiders the biggest winners as Xiamen Amoytop Biotech Co., Ltd.'s (SHSE:688278) market cap rises to CN¥23b

Key Insights

• Xiamen Amoytop Biotech's significant insider ownership suggests inherent interests in company's expansion
• 61% of the business is held by the top 3 shareholders
• 13% of Xiamen Amoytop Biotech is held by Institutions

Every investor in Xiamen Amoytop Biotech Co., Ltd. (SHSE:688278) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 4.1% gain.

Let's delve deeper into each type of owner of Xiamen Amoytop Biotech, beginning with the chart below.

Check out our latest analysis for Xiamen Amoytop Biotech

What Does The Institutional Ownership Tell Us About Xiamen Amoytop Biotech?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Xiamen Amoytop Biotech already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Xiamen Amoytop Biotech's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Xiamen Amoytop Biotech. The company's largest shareholder is Ying Yang, with ownership of 34%. Tonghua Dongbao Pharmaceutical Co., Ltd. is the second largest shareholder owning 16% of common stock, and Li Sun holds about 11% of the company stock. Li Sun, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 61% stake.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Xiamen Amoytop Biotech

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own the majority of Xiamen Amoytop Biotech Co., Ltd.. This means they can collectively make decisions for the company. That means insiders have a very meaningful CN¥12b stake in this CN¥23b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public, who are usually individual investors, hold a 14% stake in Xiamen Amoytop Biotech. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 5.0%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

We can see that public companies hold 16% of the Xiamen Amoytop Biotech shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Xiamen Amoytop Biotech better, we need to consider many other factors. For instance, we've identified 2 warning signs for Xiamen Amoytop Biotech (1 is concerning) that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com