Chanson International Holding's (NASDAQ:CHSN) CEO Gang Li is the most upbeat insider, and their holdings increased by 238% last week
Key Insights
Chanson International Holding's significant insider ownership suggests inherent interests in company's expansion
The largest shareholder of the company is Gang Li with a 68% stake
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
If you want to know who really controls Chanson International Holding (NASDAQ:CHSN), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 73% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As a result, insiders scored the highest last week as the company hit US$103m market cap following a 238% gain in the stock.
Let's take a closer look to see what the different types of shareholders can tell us about Chanson International Holding.
View our latest analysis for Chanson International Holding
What Does The Lack Of Institutional Ownership Tell Us About Chanson International Holding?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
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. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Chanson International Holding, for yourself, below.
Hedge funds don't have many shares in Chanson International Holding. The company's CEO Gang Li is the largest shareholder with 68% of shares outstanding. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. Jihong Cai is the second largest shareholder owning 2.2% of common stock, and Xinxia Hu holds about 1.5% of the company stock. Interestingly, the second-largest shareholder, Jihong Cai is also Chief Financial Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Chanson International Holding
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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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.
It seems that insiders own more than half the Chanson International Holding stock. This gives them a lot of power. Given it has a market cap of US$103m, that means they have US$75m worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Chanson International Holding. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
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. For example, we've discovered 2 warning signs for Chanson International Holding that you should be aware of before investing here.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
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.
