Insiders at Vesync Co., Ltd (HKG:2148) must be disappointed as shares fell 13% after recent buying
A look at the shareholders of Vesync Co., Ltd (HKG:2148) can tell us which group is the most powerful. And the group that holds the biggest slice of the pie are individual insiders with 68% ownership. In other words, the group faces the maximum upside potential (or downside risk).
Interestingly, insiders have been buying stocks recently. Their expectations, however, were not met as the market capitalization fell to HK$3.3 billion over the past week.
Let’s dive deeper into each owner type in Vesync, starting with the table below.
Check opportunities and risks within Hong Kong’s durable consumer goods industry.
What does institutional ownership tell us about Vesync?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Institutions have a very small stake in Vesync. This indicates that the company is on the radar of some funds, but it is not particularly popular with professional investors at the moment. If the company strengthens from here, we could see a situation where more institutions are eager to buy. When several institutional investors wish to buy shares, we often see a rise in the price of the share. Past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
We note that hedge funds have no significant investment in Vesync. Looking at our data, we can see that the largest shareholder is CEO Lin Yang with 35% of the shares outstanding. Meanwhile, the second and third largest shareholders hold 32% and 1.1% of the outstanding shares respectively.
To make our study more interesting, we found that the top 2 shareholders hold a majority stake in the company, which means they are powerful enough to influence company decisions.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.
Insider Ownership of Vesync
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.
Our most recent data indicates that insiders own the majority of Vesync Co., Ltd. This means they can collectively make decisions for the business. That means they own HK$2.2 billion worth of shares in the HK$3.3 billion company. It is quite significant. Good to see this level of investment. You can check here if these insiders have bought recently.
General public property
With a 30% stake, the general public, consisting mostly of individual investors, has some influence over Vesync. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
It is always useful to think about the different groups that own shares in a company. But to better understand Vesync, we need to consider many other factors. Example: we have identified 2 warning signs for Vesync you need to be aware of, and 1 of them can’t be ignored.
If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
Valuation is complex, but we help make it simple.
Find out if Vesync is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.
See the free analysis