Helport AI Limited (NASDAQ:HPAI) insiders have significant skin in the game with 64% ownership

In This Article:

Key Insights

  • Insiders appear to have a vested interest in Helport AI's growth, as seen by their sizeable ownership

  • The top 3 shareholders own 54% of the company

  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

To get a sense of who is truly in control of Helport AI Limited (NASDAQ:HPAI), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 64% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

In the chart below, we zoom in on the different ownership groups of Helport AI.

Check out our latest analysis for Helport AI

ownership-breakdown
NasdaqCM:HPAI Ownership Breakdown October 3rd 2024

What Does The Lack Of Institutional Ownership Tell Us About Helport AI?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. 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 Helport AI, for yourself, below.

earnings-and-revenue-growth
NasdaqCM:HPAI Earnings and Revenue Growth October 3rd 2024

Helport AI is not owned by hedge funds. The company's largest shareholder is Fan Yu, with ownership of 42%. For context, the second largest shareholder holds about 6.5% of the shares outstanding, followed by an ownership of 5.5% by the third-largest shareholder.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.