Public companies among Gyre Therapeutics, Inc.'s (NASDAQ:GYRE) largest shareholders, saw gain in holdings value after stock jumped 10% last week

Key Insights

• Significant control over Gyre Therapeutics by public companies implies that the general public has more power to influence management and governance-related decisions
• 75% of the company is held by a single shareholder (GNI Group Ltd.)
• 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 Gyre Therapeutics, Inc. (NASDAQ:GYRE), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 75% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, public companies benefitted the most after the company's market cap rose by US$137m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Gyre Therapeutics.

Check out our latest analysis for Gyre Therapeutics

What Does The Lack Of Institutional Ownership Tell Us About Gyre Therapeutics?

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

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Gyre Therapeutics' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Hedge funds don't have many shares in Gyre Therapeutics. Our data shows that GNI Group Ltd. is the largest shareholder with 75% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 3.4% and 3.3% of the stock. Interestingly, the bottom two of the top three shareholders also hold the title of President and Chairman of the Board, respectively, suggesting that these insiders have a personal stake in the company.

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 Gyre Therapeutics

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. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can see that insiders own shares in Gyre Therapeutics, Inc.. This is a big company, so it is good to see this level of alignment. Insiders own US$101m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Gyre Therapeutics. 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.

Public Company Ownership

We can see that public companies hold 75% of the Gyre Therapeutics shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Gyre Therapeutics better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Gyre Therapeutics you should be aware of, and 1 of them is significant.

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.