- Hong Kong
- Medical Equipment
Tieta Gao Gaush Meditech Ltd's (HKG:2407) CEO is the most bullish insider, and their stock value gained 8.0%last week
- Insiders appear to have a vested interest in Gaush Meditech's growth, as seen by their sizeable ownership
- A total of 2 investors have a majority stake in the company with 67% ownership
- Past performance of a company along with ownership data serve to give a strong idea about prospects for a business
A look at the shareholders of Gaush Meditech Ltd (HKG:2407) can tell us which group is most powerful. The group holding the most number of shares in the company, around 43% to be precise, is individual insiders. 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, insiders were the biggest beneficiaries of last week’s 8.0% gain.
Let's delve deeper into each type of owner of Gaush Meditech, beginning with the chart below.
See our latest analysis for Gaush Meditech
What Does The Lack Of Institutional Ownership Tell Us About Gaush Meditech?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
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. Alternatively, there might be something about the company that has kept institutional investors away. Gaush Meditech's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
Gaush Meditech is not owned by hedge funds. With a 43% stake, CEO Tieta Gao is the largest shareholder. For context, the second largest shareholder holds about 24% of the shares outstanding, followed by an ownership of 7.7% by the third-largest shareholder.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Gaush Meditech
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
It seems insiders own a significant proportion of Gaush Meditech Ltd. Insiders own HK$3.3b worth of shares in the HK$7.8b company. 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-- including retail investors -- own 17% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Equity Ownership
With an ownership of 24%, 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.
Private Company Ownership
Our data indicates that Private Companies hold 15%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
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. For instance, we've identified 1 warning sign for Gaush Meditech that you should be aware of.
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.
Gaush Meditech Ltd. researches and develops, produces, and sells ophthalmic medical devices in the People’s Republic of China and internationally.
Slightly overvalued with concerning outlook.