Following recent decline, Dogness (International) Corporation's (NASDAQ:DOGZ) top shareholder CEO Silong Chen sees holdings value drop by 37%

Key Insights

• Dogness (International)'s significant insider ownership suggests inherent interests in company's expansion
• 71% of the company is held by a single shareholder (Silong Chen)
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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Every investor in Dogness (International) Corporation (NASDAQ:DOGZ) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 85% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to US$237m last week, insiders would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of Dogness (International).

View our latest analysis for Dogness (International)

What Does The Lack Of Institutional Ownership Tell Us About Dogness (International)?

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. 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 Dogness (International), for yourself, below.

Dogness (International) is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Silong Chen with 71% 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. The second and third largest shareholders are Yuzhang Zhou and Xuzhong Xu, with an equal amount of shares to their name at 3.9%.

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. 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 Dogness (International)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own the majority of Dogness (International) Corporation. This means they can collectively make decisions for the company. Given it has a market cap of US$237m, that means they have US$202m worth of shares. Most would be pleased to see the board is investing alongside them. You may wish to discover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 14% stake in Dogness (International). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Be aware that Dogness (International) is showing 3 warning signs in our investment analysis , and 2 of those are a bit concerning...

Of course this may not be the best stock to buy. So take a peek at this free 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.