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If you want to know who really controls Shandong Weigao Group Medical Polymer Company Limited (HKG:1066), then you’ll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
Shandong Weigao Group Medical Polymer is a pretty big company. It has a market capitalization of HK$34.87b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let’s delve deeper into each type of owner, to discover more about 1066.
View our latest analysis for Shandong Weigao Group Medical Polymer
What Does The Institutional Ownership Tell Us About Shandong Weigao Group Medical Polymer?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Shandong Weigao Group Medical Polymer already has institutions on the share registry. Indeed, they own 30.2% of the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Shandong Weigao Group Medical Polymer’s historic earnings and revenue, below, but keep in mind there’s always more to the story.
Shandong Weigao Group Medical Polymer is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Shandong Weigao Group Medical Polymer
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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. I can report that insiders do own shares in Shandong Weigao Group Medical Polymer Company Limited. The insiders have a meaningful stake worth HK$548.2m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.