After the recent decline, Jyong Biotech Ltd. (NASDAQ:MENS) CEO Fu-Feng Kuo's holdings have lost 33% of their value

Key Insights

• Insiders appear to have a vested interest in Jyong Biotech's growth, as seen by their sizeable ownership
• The top 3 shareholders own 52% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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A look at the shareholders of Jyong Biotech Ltd. (NASDAQ:MENS) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 61% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to US$248m last week, insiders would have faced the highest losses than any other shareholder groups of the company.

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

See our latest analysis for Jyong Biotech

What Does The Lack Of Institutional Ownership Tell Us About Jyong Biotech?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Jyong Biotech might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Jyong Biotech is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Fu-Feng Kuo with 33% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.9% and 8.9% of the stock.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Jyong Biotech

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Jyong Biotech Ltd.. This means they can collectively make decisions for the company. That means they own US$152m worth of shares in the US$248m 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

The general public, who are usually individual investors, hold a 38% stake in Jyong Biotech. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jyong Biotech better, we need to consider many other factors. For example, we've discovered 5 warning signs for Jyong Biotech (4 are significant!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.