Retail investors among Roma Green Finance Limited's (NASDAQ:ROMA) largest stockholders and were hit after last week's 25% price drop

Key Insights

• The considerable ownership by retail investors in Roma Green Finance indicates that they collectively have a greater say in management and business strategy
• A total of 6 investors have a majority stake in the company with 36% ownership
• Insider ownership in Roma Green Finance is 10%

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Every investor in Roma Green Finance Limited (NASDAQ:ROMA) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 28% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 25% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 10% stock also took a hit.

Let's delve deeper into each type of owner of Roma Green Finance, beginning with the chart below.

Check out our latest analysis for Roma Green Finance

What Does The Lack Of Institutional Ownership Tell Us About Roma Green Finance?

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 are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. 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. 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 Roma Green Finance, for yourself, below.

Roma Green Finance is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Huen Ling Luk with 23% of shares outstanding. With 13% and 0.4% of the shares outstanding respectively, Eastern Pearl Capital Fund Spc - Eastern Pearl Caelus Fund Sp and UBS Asset Management AG are the second and third largest shareholders.

A deeper look at our ownership data shows that the top 6 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 Roma Green Finance

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own a reasonable proportion of Roma Green Finance Limited. Insiders have a US$20m stake in this US$196m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Roma Green Finance. 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

We can see that Private Companies own 5.7%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Roma Green Finance better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Roma Green Finance (of which 2 are potentially serious!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.