G.H.Y Culture & Media Holding Co., Limited's (SGX:XJB) CEO Jingyu Guo is the most upbeat insider, and their holdings increased by 19% last week

Key Insights

• Insiders appear to have a vested interest in G.H.Y Culture & Media Holding's growth, as seen by their sizeable ownership
• 63% of the company is held by a single shareholder (Jingyu Guo)
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in G.H.Y Culture & Media Holding Co., Limited (SGX:XJB) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 82% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by S$22m last week.

In the chart below, we zoom in on the different ownership groups of G.H.Y Culture & Media Holding.

See our latest analysis for G.H.Y Culture & Media Holding

What Does The Lack Of Institutional Ownership Tell Us About G.H.Y Culture & Media Holding?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

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. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of G.H.Y Culture & Media Holding, for yourself, below.

G.H.Y Culture & Media Holding is not owned by hedge funds. With a 63% stake, CEO Jingyu Guo is the largest shareholder. 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. John Ho is the second largest shareholder owning 10% of common stock, and Taiho Holding Ltd holds about 7.1% 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of G.H.Y Culture & Media Holding

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. 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.

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.

It seems that insiders own more than half the G.H.Y Culture & Media Holding Co., Limited stock. This gives them a lot of power. So they have a S$114m stake in this S$139m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over G.H.Y Culture & Media 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.

Private Company Ownership

Our data indicates that Private Companies hold 7.2%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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. For instance, we've identified 2 warning signs for G.H.Y Culture & Media Holding that you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.