Haichang Ocean Park Holdings Ltd.'s (HKG:2255) most bullish insider is Senior Key Executive Cheng Qu, and their holdings value went up by 8.6% last week

Key Insights

• Significant insider control over Haichang Ocean Park Holdings implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 62% ownership
• 26% of Haichang Ocean Park Holdings is held by Institutions

To get a sense of who is truly in control of Haichang Ocean Park Holdings Ltd. (HKG:2255), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 48% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit HK$6.2b market cap following a 8.6% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Haichang Ocean Park Holdings.

Check out our latest analysis for Haichang Ocean Park Holdings

What Does The Institutional Ownership Tell Us About Haichang Ocean Park Holdings?

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.

As you can see, institutional investors have a fair amount of stake in Haichang Ocean Park Holdings. 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 Haichang Ocean Park Holdings' earnings history below. Of course, the future is what really matters.

Haichang Ocean Park Holdings is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Haichang Ocean Park Holdings' case, its Senior Key Executive, Cheng Qu, is the largest shareholder, holding 48% of shares outstanding. For context, the second largest shareholder holds about 15% of the shares outstanding, followed by an ownership of 3.4% by the third-largest shareholder.

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 62% 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 Haichang Ocean Park 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.

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 a reasonable proportion of Haichang Ocean Park Holdings Ltd.. Insiders have a HK$3.0b stake in this HK$6.2b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. 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 26% stake in Haichang Ocean Park Holdings. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

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.