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Ocumension Therapeutics’ (HKG:1477) largest shareholders are private equity firms who were rewarded as market cap surged HK$400m last week

SEHK:1477

If you want to know who really controls Ocumension Therapeutics (HKG:1477), then you’ll have to look at the makeup of its share registry. We can see that private equity firms own the lion’s share in the company with 44% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, private equity firms benefitted the most after the company’s market cap rose by HK$400m last week.

Let’s take a closer look to see what the different types of shareholders can tell us about Ocumension Therapeutics.

View our latest analysis for Ocumension Therapeutics

ownership-breakdown
SEHK:1477 Ownership Breakdown July 8th 2022

What Does The Institutional Ownership Tell Us About Ocumension Therapeutics?

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.

Ocumension Therapeutics already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Ocumension Therapeutics’ earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEHK:1477 Earnings and Revenue Growth July 8th 2022

Hedge funds don’t have many shares in Ocumension Therapeutics. 6 Dimensions Capital, L.P. is currently the largest shareholder, with 25% of shares outstanding. With 13% and 12% of the shares outstanding respectively, Lian Yong Chen and Boyu Capital Consultancy Co., Ltd. are the second and third largest shareholders. Additionally, the company’s CEO Ye Liu directly holds 2.1% of the total shares outstanding.

On looking further, we found that 58% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Ocumension Therapeutics

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.

Our information suggests that insiders maintain a significant holding in Ocumension Therapeutics. It is very interesting to see that insiders have a meaningful HK$1.5b stake in this HK$9.8b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 27% stake in Ocumension Therapeutics. 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 44%, private equity firms could influence the Ocumension Therapeutics board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it 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. Case in point: We’ve spotted 2 warning signs for Ocumension Therapeutics you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

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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