Haimei Wu Baird Medical Investment Holdings Limited's (NASDAQ:BDMD) CEO is the most bullish insider, and their stock value gained 327%last week

Key Insights

• Significant insider control over Baird Medical Investment Holdings implies vested interests in company growth
• 51% of the company is held by a single shareholder (Haimei Wu)
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Baird Medical Investment Holdings Limited (NASDAQ:BDMD) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit US$272m market cap following a 327% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Baird Medical Investment Holdings.

Check out our latest analysis for Baird Medical Investment Holdings

What Does The Lack Of Institutional Ownership Tell Us About Baird Medical Investment Holdings?

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 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. 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 Baird Medical Investment Holdings, for yourself, below.

We note that hedge funds don't have a meaningful investment in Baird Medical Investment Holdings. The company's CEO Haimei Wu is the largest shareholder with 51% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. In comparison, the second and third largest shareholders hold about 13% and 6.1% of the stock.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Baird Medical Investment Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 Baird Medical Investment Holdings Limited. This means they can collectively make decisions for the company. So they have a US$138m stake in this US$272m business. 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, who are usually individual investors, hold a 30% stake in Baird Medical Investment Holdings. 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

It seems that Private Companies own 19%, of the Baird Medical Investment Holdings stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Baird Medical Investment Holdings better, we need to consider many other factors. For instance, we've identified 3 warning signs for Baird Medical Investment Holdings 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.