Alibaba Health Information Technology Limited's (HKG:241) biggest owners are public companies who got richer after stock soared 11% last week

Key Insights

• Significant control over Alibaba Health Information Technology by public companies implies that the general public has more power to influence management and governance-related decisions
• The top 2 shareholders own 64% of the company
• 19% of Alibaba Health Information Technology is held by insiders

If you want to know who really controls Alibaba Health Information Technology Limited (HKG:241), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 45% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, public companies collectively scored the highest last week as the company hit HK$69b market cap following a 11% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Alibaba Health Information Technology.

See our latest analysis for Alibaba Health Information Technology

What Does The Institutional Ownership Tell Us About Alibaba Health Information Technology?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Alibaba Health Information Technology does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Alibaba Health Information Technology's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Alibaba Health Information Technology. Looking at our data, we can see that the largest shareholder is Alibaba Group Holding Limited with 45% of shares outstanding. Wei Bo Feng is the second largest shareholder owning 19% of common stock, and Krane Funds Advisors, LLC holds about 1.7% of the company stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 64% stake.

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 Alibaba Health Information Technology

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Alibaba Health Information Technology Limited. It is very interesting to see that insiders have a meaningful HK$13b stake in this HK$69b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. 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 24% stake in Alibaba Health Information Technology. 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.

Public Company Ownership

Public companies currently own 45% of Alibaba Health Information Technology stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Alibaba Health Information Technology is showing 3 warning signs in our investment analysis , you should know about...

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.