Haisco Pharmaceutical Group Co., Ltd. (SZSE:002653) insiders, who hold 64% of the firm would be disappointed by the recent pullback
Key Insights
- Haisco Pharmaceutical Group's significant insider ownership suggests inherent interests in company's expansion
- 59% of the business is held by the top 2 shareholders
- Institutional ownership in Haisco Pharmaceutical Group is 11%
To get a sense of who is truly in control of Haisco Pharmaceutical Group Co., Ltd. (SZSE:002653), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 64% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, insiders as a group endured the highest losses after market cap fell by CN¥2.8b.
Let's delve deeper into each type of owner of Haisco Pharmaceutical Group, beginning with the chart below.
See our latest analysis for Haisco Pharmaceutical Group
What Does The Institutional Ownership Tell Us About Haisco Pharmaceutical Group?
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.
Haisco Pharmaceutical Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Haisco Pharmaceutical Group's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Haisco Pharmaceutical Group. The company's largest shareholder is Jun Min Wang, with ownership of 36%. With 23% and 4.5% of the shares outstanding respectively, Xiu Lian Fan and Ping Shen are the second and third largest shareholders. Xiu Lian Fan, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Haisco Pharmaceutical Group
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.
It seems that insiders own more than half the Haisco Pharmaceutical Group Co., Ltd. stock. This gives them a lot of power. Insiders own CN¥21b worth of shares in the CN¥33b company. That's extraordinary! 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
With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Haisco Pharmaceutical Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Haisco Pharmaceutical Group better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Haisco Pharmaceutical Group you should be aware of, and 1 of them is concerning.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.
Valuation is complex, but we're here to simplify it.
Discover if Haisco Pharmaceutical Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.
About SZSE:002653
Haisco Pharmaceutical Group
Research, develops, manufactures, and sells pharmaceuticals in China.
High growth potential with excellent balance sheet.
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