The recent 15% gain must have brightened CEO Silong Chen's week, Dogness (International) Corporation's (NASDAQ:DOGZ) most bullish insider

editorial-team@simplywallst.com (Simply Wall St)

Fri, Sep 13, 2024, 9:29 AM 4 min read

Insiders appear to have a vested interest in Dogness (International)'s growth, as seen by their sizeable ownership
71% of the company is held by a single shareholder (Silong Chen)
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Dogness (International) Corporation (NASDAQ:DOGZ), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 87% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit US$327m market cap following a 15% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Dogness (International).

View our latest analysis for Dogness (International)

ownership-breakdown — NasdaqCM:DOGZ Ownership Breakdown September 13th 2024

What Does The Lack Of Institutional Ownership Tell Us About Dogness (International)?

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. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. 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 Dogness (International), for yourself, below.

earnings-and-revenue-growth — NasdaqCM:DOGZ Earnings and Revenue Growth September 13th 2024

Dogness (International) is not owned by hedge funds. The company's CEO Silong Chen is the largest shareholder with 71% 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. Yuhua Lin is the second largest shareholder owning 4.7% of common stock, and Yuzhang Zhou holds about 3.9% of the company stock.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Dogness (International)

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders own more than half of Dogness (International) Corporation. This gives them effective control of the company. That means they own US$284m worth of shares in the US$327m company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 12% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Dogness (International) better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Dogness (International) (including 2 which are significant) .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.