Richtech Robotics Inc.'s (NASDAQ:RR) most bullish insider is CEO Zhenwu Huang, and their holdings value went up by 128% last week

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

Sat, Dec 28, 2024, 6:31 AM 4 min read

To get a sense of who is truly in control of Richtech Robotics Inc. (NASDAQ:RR), it is important to understand the ownership structure of the business. With 52% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by US$159m last week.

Let's delve deeper into each type of owner of Richtech Robotics, beginning with the chart below.

View our latest analysis for Richtech Robotics

ownership-breakdown — NasdaqCM:RR Ownership Breakdown December 28th 2024

What Does The Institutional Ownership Tell Us About Richtech Robotics?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Institutions have a very small stake in Richtech Robotics. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

earnings-and-revenue-growth — NasdaqCM:RR Earnings and Revenue Growth December 28th 2024

Hedge funds don't have many shares in Richtech Robotics. The company's CEO Zhenwu Huang is the largest shareholder with 31% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.1% and 4.0% of the stock. Interestingly, the second-largest shareholder, Zhenqiang Huang is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 Richtech Robotics

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.

It seems that insiders own more than half the Richtech Robotics Inc. stock. This gives them a lot of power. That means they own US$136m worth of shares in the US$261m 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

With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Richtech Robotics. 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 Richtech Robotics better, we need to consider many other factors. Take risks for example - Richtech Robotics has 2 warning signs we think you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.