Insiders of Congyu Intelligent Agricultural Holdings Limited (HKG:875) must be frustrated after market cap dropped HK$142m since recent purchases

Key Insights

• Significant insider control over Congyu Intelligent Agricultural Holdings implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 57% ownership
• Recent purchases by insiders

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Every investor in Congyu Intelligent Agricultural Holdings Limited (HKG:875) should be aware of the most powerful shareholder groups. With 57% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And looking at our data, we can see that insiders have bought shares recently. So the news of stock price falling by 15% is not something they might have been expecting soon after purchasing shares.

Let's delve deeper into each type of owner of Congyu Intelligent Agricultural Holdings, beginning with the chart below.

Check out our latest analysis for Congyu Intelligent Agricultural Holdings

What Does The Lack Of Institutional Ownership Tell Us About Congyu Intelligent Agricultural Holdings?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

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. 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 Congyu Intelligent Agricultural Holdings, for yourself, below.

We note that hedge funds don't have a meaningful investment in Congyu Intelligent Agricultural Holdings. With a 49% stake, CEO Yuhao Lin is the largest shareholder. With an ownership of 8.3%, the second largest shareholder is Lijun Jin

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Congyu Intelligent Agricultural Holdings

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. 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.

Our most recent data indicates that insiders own the majority of Congyu Intelligent Agricultural Holdings Limited. This means they can collectively make decisions for the company. That means they own HK$455m worth of shares in the HK$797m company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Congyu Intelligent Agricultural 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Congyu Intelligent Agricultural Holdings better, we need to consider many other factors. Take risks for example - Congyu Intelligent Agricultural Holdings has 3 warning signs we think you should be aware of.

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.