MicroPort CardioFlow Medtech Corporation's (HKG:2160) biggest owners are public companies who got richer after stock soared 14% last week

Key Insights

• The considerable ownership by public companies in MicroPort CardioFlow Medtech indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 54% of the company
• Institutional ownership in MicroPort CardioFlow Medtech is 11%

Every investor in MicroPort CardioFlow Medtech Corporation (HKG:2160) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 46% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, public companies benefitted the most after the company's market cap rose by HK$338m last week.

Let's delve deeper into each type of owner of MicroPort CardioFlow Medtech, beginning with the chart below.

View our latest analysis for MicroPort CardioFlow Medtech

What Does The Institutional Ownership Tell Us About MicroPort CardioFlow Medtech?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in MicroPort CardioFlow Medtech. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of MicroPort CardioFlow Medtech, (below). Of course, keep in mind that there are other factors to consider, too.

MicroPort CardioFlow Medtech is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is MicroPort Scientific Corporation with 46% of shares outstanding. With 7.5% and 4.8% of the shares outstanding respectively, CICC Jiameng (Tianjin) Equity Investment Fund Management Co., Ltd. and Huaxing Growth Capital are the second and third largest shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of MicroPort CardioFlow Medtech

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 data suggests that insiders own under 1% of MicroPort CardioFlow Medtech Corporation in their own names. It appears that the board holds about HK$10m worth of stock. This compares to a market capitalization of HK$2.5b. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 35% stake in MicroPort CardioFlow Medtech. 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.

Private Equity Ownership

With an ownership of 7.5%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Public Company Ownership

Public companies currently own 46% of MicroPort CardioFlow Medtech stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand MicroPort CardioFlow Medtech better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.

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

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.