Giant Biogene Holding Co., Ltd.'s (HKG:2367) Chief Scientific Officer Daidi Fan is the most upbeat insider, and their holdings increased by 3.3% last week

Key Insights

• Giant Biogene Holding's significant insider ownership suggests inherent interests in company's expansion
• 58% of the company is held by a single shareholder (Daidi Fan)
• Institutions own 18% of Giant Biogene Holding

To get a sense of who is truly in control of Giant Biogene Holding Co., Ltd. (HKG:2367), 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 58% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit HK$52b market cap following a 3.3% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Giant Biogene Holding.

Check out our latest analysis for Giant Biogene Holding

What Does The Institutional Ownership Tell Us About Giant Biogene Holding?

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.

Giant Biogene Holding already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Giant Biogene Holding, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Giant Biogene Holding. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Giant Biogene Holding's case, its Chief Scientific Officer, Daidi Fan, is the largest shareholder, holding 58% of shares outstanding. With 5.0% and 1.8% of the shares outstanding respectively, E Fund Management Co., Ltd. and The Vanguard Group, Inc. are the second and third largest shareholders.

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 Giant Biogene Holding

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.

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 that insiders own more than half the Giant Biogene Holding Co., Ltd. stock. This gives them a lot of power. Given it has a market cap of HK$52b, that means insiders have a whopping HK$30b worth of shares in their own names. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Giant Biogene Holding. 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. Take risks for example - Giant Biogene Holding has 1 warning sign we think you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.