A look at the shareholders of Oriental Culture Holding LTD (NASDAQ: OCG) can tell us which group is more powerful. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. Warren Buffett said he enjoys “a business with sustainable competitive advantages that is led by skilled, owner-centered people.” So it’s nice to see some insider ownership as it can suggest that the management is owner-driven.
Oriental Culture Holding is a smaller company with a market cap of US $ 103 million, so it may still go under the radar of many institutional investors. Looking at our data on ownership groups (below), it appears that institutions are not really present on the share register. Let’s dig deeper into each type of owner, to find out more about Oriental Culture Holding.
NasdaqCM: Distribution of OCG ownership December 24, 2021
What does institutional ownership tell us about the holding of oriental culture?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
Less than 5% of Oriental Culture Holding is held by institutional investors. This suggests that some funds have the company in their sights, but many have yet to buy any shares. If the company increases its profits, it may indicate that it is just starting to catch the attention of those investors with deep pockets. It is not uncommon to see a sharp rise in stock prices if several institutional investors attempt to buy a stock at the same time. So check out the historical earnings path below, but keep in mind that it’s the future that matters most.
NasdaqCM: OCG Earnings and Revenue Growth December 24, 2021
Hedge funds don’t have a lot of shares in Oriental Culture Holding. Mun Wah Wan is currently the largest shareholder in the company with 19% of the shares outstanding. The second and third shareholders are Kong Aimin and Gao Huajun, with an equal number of shares in their name at 12%. In addition, we found that Yi Shao, the CEO, owns 4.2% of the shares allocated to their name.
We also observed that the top 8 shareholders make up more than half of the share register, with a few smaller shareholders to some extent to balance the interests of the larger ones.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same result can be obtained by studying the feelings of analysts. As far as we can tell, the company is not covered by analysts, so it probably goes unnoticed.
Insider ownership of Oriental Culture Holding
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in certain circumstances.
Our most recent data indicates that insiders own a reasonable proportion of Oriental Culture Holding LTD. It has a market capitalization of only US $ 103 million and insiders hold US $ 50 million in shares in their own name. We would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders bought or sold.
General public property
With a 50% stake, the general public, made up mainly of individual investors, has some influence over Oriental Culture Holding. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Consider risks, for example. Every business has them, and we’ve spotted 1 warning sign for Oriental Culture Holding you should know.
If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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