Key Insights

• Adlai Nortye's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public

• 41% of the business is held by the top 9 shareholders

• Insiders own 16% of Adlai Nortye

If you want to know who really controls Adlai Nortye Ltd. (NASDAQ:ANL), then you'll have to look at the makeup of its share registry.  With 59% stake, individual investors 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).

While individual investors were the group that benefitted the most from last week's US$108m market cap gain, insiders too had a 16% share in those profits.    

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

NasdaqGM:ANL Ownership Breakdown April 9th 2024

What Does The Institutional Ownership Tell Us About Adlai Nortye?

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.

We can see that Adlai Nortye does have institutional investors; and they hold a good portion of the company's stock.  This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong.  It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Adlai Nortye, (below). Of course, keep in mind that there are other factors to consider, too.

NasdaqGM:ANL Earnings and Revenue Growth April 9th 2024

Adlai Nortye is not owned by hedge funds.      The company's CEO Yang Lu is the largest shareholder with 11% of shares outstanding.       In comparison, the second and third largest shareholders hold about 7.7% and 6.2% of the stock.    

Our studies suggest that the top 9 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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.   While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.  

Insider Ownership Of Adlai Nortye

The definition of an insider can differ slightly between different countries, but members of the board of directors always count.  Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our information suggests that insiders maintain a significant holding in Adlai Nortye Ltd..   Insiders own US$49m worth of shares in the US$306m company.  We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can  click here to see if those insiders have been buying or selling.  

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 59% of Adlai Nortye shares.   This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.  

Private Company Ownership

Our data indicates that Private Companies hold 12%, of the company's shares.   It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.  

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Adlai Nortye better, we need to consider many other factors.    Case in point: We've spotted   5 warning signs for Adlai Nortye  you should be aware of, and 4 of them can't be ignored.    

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.