Insiders of Blue Moon Group Holdings Limited (HKG:6993) must be disappointed as stock fell 5.3% after recent purchases

Key Insights

• Insiders appear to have a vested interest in Blue Moon Group Holdings' growth, as seen by their sizeable ownership
• 74% of the company is held by a single shareholder (Dong Pan)
• Insiders have bought recently

If you want to know who really controls Blue Moon Group Holdings Limited (HKG:6993), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 74% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

A quick look at our data suggests that insiders have been buying shares in the company recently. However, with shares price down 5.3% last week, they must be disappointed.

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

Check out our latest analysis for Blue Moon Group Holdings

What Does The Lack Of Institutional Ownership Tell Us About Blue Moon Group Holdings?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at 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. Blue Moon Group Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Blue Moon Group Holdings is not owned by hedge funds. From our data, we infer that the largest shareholder is Dong Pan (who also holds the title of Chief Technology Officer) with 74% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Hillhouse Investment Management, Ltd. is the second largest shareholder owning 9.3% of common stock, and The Vanguard Group, Inc. holds about 0.6% of the company stock.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Blue Moon Group Holdings

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.

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.

Our information suggests that insiders own more than half of Blue Moon Group Holdings Limited. This gives them effective control of the company. Insiders own HK$9.3b worth of shares in the HK$13b company. That's extraordinary! Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public, who are usually individual investors, hold a 16% stake in Blue Moon Group Holdings. 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 9.3%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Blue Moon Group Holdings is showing 1 warning sign in our investment analysis , you should know about...

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.