Every investor in JW (Cayman) Therapeutics Co. Ltd (HKG:2126) should know the most powerful shareholder groups. And the group that holds the biggest slice of the pie are individual investors with 49% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
And last week, individual investors suffered the biggest losses as the stock fell 13%.
Let’s take a closer look at what different types of shareholders can tell us about JW (Cayman) Therapeutics.
Check out our latest analysis for JW (Cayman) Therapeutics
What does institutional ownership tell us about JW (Cayman) Therapeutics?
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.
As you can see, institutional investors own a sizeable portion of JW (Cayman) Therapeutics. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see JW (Cayman) Therapeutics’ historical revenue and earnings below, but keep in mind there’s always more to the story.
Hedge funds don’t have a lot of shares in JW (Cayman) Therapeutics. Our data shows that Bristol-Myers Squibb Company is the largest shareholder with 17% of shares outstanding. Syracuse Biopharma (Cayman) Ltd is the second largest shareholder with 11% of the common shares and Yiping Li owns around 5.1% of the shares of the company. Yiping Li, who is the third largest shareholder, also holds the title of chairman of the board.
After digging a little deeper, we found that the top 14 held a combined 50% stake in the company, suggesting that no single shareholder has significant control over the company.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
Insider Property of JW (Cayman) Therapeutics
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
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 hold shares in JW (Cayman) Therapeutics Co. Ltd. In their own name, insiders hold HK$237 million worth of shares in the HK$3.5 billion company. Some would say this shows the alignment of interests between shareholders and the board. But it might be worth checking to see if these insiders have sold.
General public property
With a 49% stake, the general public, consisting primarily of individual investors, has some influence over JW (Cayman) Therapeutics. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Private Company Ownership
It appears that private companies own 11% of the shares of JW (Cayman) Therapeutics. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
Ownership of a public company
We can see that public companies own 21% of JW (Cayman) Therapeutics shares on issuance. It’s hard to say for sure, but it suggests they have intertwined business interests. This could be a strategic stake, so it’s worth monitoring this space for ownership changes.
I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. For example, we found 4 warning signs for JW (Cayman) Therapeutics which you should be aware of before investing here.
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 in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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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.