Which type of shareholders owns the most shares of Viva Biotech Holdings (HKG:1873)?

Every investor in Viva Biotech Holdings (HKG:1873) should know the most powerful shareholder groups. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet”.

Viva Biotech Holdings is a small company with a market capitalization of HK$4.9 billion, so it may still fly under the radar of many institutional investors. In the graph below, we can see that the institutions own shares in the company. Let’s take a closer look at what different types of shareholders can tell us about Viva Biotech Holdings.

Check out our latest analysis for Viva Biotech Holdings

SEHK:1873 Ownership Distribution June 8, 2022

What does institutional ownership tell us about Viva Biotech Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

Viva Biotech Holdings already has institutions on the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Viva Biotech Holdings’ earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEHK: 1873 Earnings and Revenue Growth June 8, 2022

We note that hedge funds have no significant investment in Viva Biotech Holdings. The company’s largest shareholder is Jiong Wu, with a 12% stake. For context, the second shareholder owns approximately 10% of the outstanding shares, followed by an 8.6% ownership by the third shareholder. Chen Cheney Mao, who is the second largest shareholder, also holds the title of general manager.

We also observed that the top 8 shareholders represent more than half of the share register, with some small shareholders to balance the interests of the larger ones to some extent.

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. Although there is some analyst coverage, the company is probably not widely covered. So it could attract more attention, on the track.

Insider ownership of Viva Biotech Holdings

The definition of an insider may differ slightly from country to country, but board members still matter. 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.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders hold a significant stake in Viva Biotech Holdings. Insiders have a HK$1.6 billion stake in the HK$4.9 billion venture. It’s great to see insiders so invested in the company. It might be worth checking to see if these insiders have bought recently.

General public property

The general public, including retail investors, owns 36% of the company’s shares and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other large shareholders.

Private Company Ownership

We can see that private companies hold 17% of the issued shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Take risks for example – Viva Biotech Holdings has 2 warning signs (and 1 of concern) that we think you should know about.

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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 in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

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.

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