Individual investors invested in Feiyang International Holdings Group Limited (HKG:1901) up 11% last week, insiders too were rewarded

Key Insights

• The considerable ownership by individual investors in Feiyang International Holdings Group indicates that they collectively have a greater say in management and business strategy
• 42% of the business is held by the top 3 shareholders
• 42% of Feiyang International Holdings Group is held by insiders

If you want to know who really controls Feiyang International Holdings Group Limited (HKG:1901), then you'll have to look at the makeup of its share registry. With 58% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors gained the most after market cap touched HK$982m last week, while insiders who own 42% also benefitted.

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

Check out our latest analysis for Feiyang International Holdings Group

What Does The Lack Of Institutional Ownership Tell Us About Feiyang International Holdings Group?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. 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 Feiyang International Holdings Group, for yourself, below.

We note that hedge funds don't have a meaningful investment in Feiyang International Holdings Group. With a 39% stake, CEO Binfeng He is the largest shareholder. For context, the second largest shareholder holds about 2.2% of the shares outstanding, followed by an ownership of 0.4% by the third-largest shareholder. Interestingly, the third-largest shareholder, Bin Wu is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

On studying our ownership data, we found that 3 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. 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 Feiyang International Holdings Group

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.

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 maintain a significant holding in Feiyang International Holdings Group Limited. It has a market capitalization of just HK$982m, and insiders have HK$414m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 58% of Feiyang International Holdings Group shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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. Case in point: We've spotted 3 warning signs for Feiyang International Holdings Group you should be aware of, and 2 of them are a bit unpleasant.

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.