RGC Ownership Breakdown To get a sense of who i
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To get a sense of who is truly in control of Regencell Bioscience Holdings Limited (NASDAQ:RGC), it is important to understand the ownership structure of the business. With 81% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises.
Data shows that insiders recently bought shares in the company and they were rewarded after market cap rose US$64m last week.
Let's take a closer look to see what the different types of shareholders can tell us about Regencell Bioscience Holdings.
What Does The Lack Of Institutional Ownership Tell Us About Regencell Bioscience Holdings?
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 multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company.
Hedge funds don't have many shares in Regencell Bioscience Holdings. With a 81% stake, CEO Yat-Gai Au is the largest shareholder. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. In comparison, the second and third largest shareholders hold about 7.6% and 0.1% of the stock.
Insider Ownership Of Regencell Bioscience Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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. Insider ownership is positive when it signals leadership are thinking like the true owners of the company.
Most recent data indicates that insiders own the majority of Regencell Bioscience Holdings Limited. This means they can collectively make decisions for the company. So they have a US$430m stake in this US$531m business. Most would be pleased to see the board is investing alongside them.
General Public Ownership
With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Regencell Bioscience Holdings. 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 7.6%, private equity firms could influence the Regencell Bioscience Holdings 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.
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