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Bloomage BioTechnology Corporation Limited's (SHSE:688363) Largest Shareholders Are Private Equity Firms With 66% Ownership, Individual Investors Own 17%

Simply Wall St ·  Dec 19, 2022 09:45

To get a sense of who is truly in control of Bloomage BioTechnology Corporation Limited (SHSE:688363), it is important to understand the ownership structure of the business. We can see that private equity firms own the lion's share in the company with 66% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And individual investors on the other hand have a 17% ownership in the company.

Let's delve deeper into each type of owner of Bloomage BioTechnology, beginning with the chart below.

Check out our latest analysis for Bloomage BioTechnology

ownership-breakdownSHSE:688363 Ownership Breakdown December 19th 2022

What Does The Institutional Ownership Tell Us About Bloomage BioTechnology?

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.

We can see that Bloomage BioTechnology does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Bloomage BioTechnology's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growthSHSE:688363 Earnings and Revenue Growth December 19th 2022

Hedge funds don't have many shares in Bloomage BioTechnology. The company's largest shareholder is Huaxi Xinyu Investment Co., Ltd., with ownership of 59%. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 7.2% and 1.6% of the stock.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Bloomage BioTechnology

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can see that insiders own shares in Bloomage BioTechnology Corporation Limited. It is a very large company, and board members collectively own CN¥1.7b worth of shares (at current prices). we sometimes take an interest in whether they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 17% stake in Bloomage BioTechnology. 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.

Private Equity Ownership

With a stake of 66%, private equity firms could influence the Bloomage BioTechnology board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Bloomage BioTechnology has 1 warning sign we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

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