Zhangsun Zhang Glory Health Industry Limited's (HKG:2329) CEO is the most bullish insider, and their stock value gained 302%last week

Key Insights

• Significant insider control over Glory Health Industry implies vested interests in company growth
• 77% of the company is held by a single shareholder (Zhangsun Zhang)
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Glory Health Industry Limited (HKG:2329), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 77% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 302% gain.

In the chart below, we zoom in on the different ownership groups of Glory Health Industry.

Check out our latest analysis for Glory Health Industry

What Does The Lack Of Institutional Ownership Tell Us About Glory Health Industry?

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

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. 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. Glory Health Industry'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.

Glory Health Industry is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Zhangsun Zhang with 77% of shares outstanding. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. Meanwhile, the second largest shareholder is Dimensional Fund Advisors LP holding 0.1%.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Glory Health Industry

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.

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 the majority of Glory Health Industry Limited. This means they can collectively make decisions for the company. That means they own HK$685m worth of shares in the HK$893m company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 23% 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.

Next Steps:

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. Case in point: We've spotted 3 warning signs for Glory Health Industry you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.