In This Article:
Key Insights
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Significant insider control over Linkage Global implies vested interests in company growth
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52% of the business is held by the top 2 shareholders
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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 Linkage Global Inc (NASDAQ:LGCB), it is important to understand the ownership structure of the business. With 67% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, insiders scored the highest last week as the company hit US$103m market cap following a 51% gain in the stock.
Let's delve deeper into each type of owner of Linkage Global, beginning with the chart below.
View our latest analysis for Linkage Global
What Does The Lack Of Institutional Ownership Tell Us About Linkage Global?
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. 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 Linkage Global, for yourself, below.
Linkage Global is not owned by hedge funds. With a 47% stake, CEO Zhihua Wu is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 4.5% and 4.3%, of the shares outstanding, respectively.
After doing some more digging, we found that the top 2 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.
Insider Ownership Of Linkage Global
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.