Human technology

Renrui Human Resources Technology Holdings Limited (HKG: 6919) Most Upbeat Insider Is CEO Jianguo Zhang, and Their Holdings Have Raised 14% Last Week


If you want to know who actually controls Renrui Human Resources Technology Holdings Limited (HKG: 6919), then you will need to look at the makeup of its share register. And the group that holds the biggest slice of the pie is individual insiders with 37% ownership. That is, the group is most likely to benefit the most if the stock rises (or to lose the most if there is a decline).

As a result, insiders had the highest score last week, with the company reaching a market cap of HK $ 1.4 billion after gaining 14% of the stock.

Let’s take a closer look at what different types of shareholders can tell us about Renrui Human Resources Technology Holdings.

See our latest analysis for Renrui Human Resources Technology Holdings

SEHK: 6919 Distribution of ownership December 1, 2021

What does institutional ownership tell us about Renrui Human Resources Technology Holdings?

Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

We can see that Renrui Human Resources Technology Holdings has institutional investors; and they own a good portion of the company’s shares. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell shares quickly. This risk is higher in a company without a history of growth. You can see Renrui Human Resources Technology Holdings’ historical revenue and revenue below, but keep in mind that there is always more to tell.

profit and revenue growth
SEHK: 6919 Profit and Revenue Growth December 1, 2021

We note that the hedge funds do not have a significant investment in Renrui Human Resources Technology Holdings. The company’s CEO, Jianguo Zhang, is the largest shareholder with 30% of the shares outstanding. Meanwhile, the second and third largest shareholders hold 14% and 11% of the outstanding shares, respectively.

A more detailed study of the register of shareholders showed us that 3 of the main shareholders hold a considerable share of the ownership of the company, through their 54% stake.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. While there is some coverage from analysts, the company is likely not widely covered. He could therefore attract more attention, at the bottom of the track.

Insider property of Renrui Human Resources Technology Holdings

The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders have a significant stake in Renrui Human Resources Technology Holdings Limited. It has a market cap of just HK $ 1.4 billion and insiders have shares worth HK $ 509 million in their name. We would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have bought or sold.

General public property

The general public, who are usually individual investors, own a 22% stake in Renrui Human Resources Technology Holdings. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.

Private shareholders

Private equity firms hold a 14% stake in Renrui Human Resources Technology Holdings. This suggests that they can influence key policy decisions. Sometimes we see private equity sticking around for the long haul, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After a while, they may look to sell and redeploy their capital elsewhere.

Owned by a private company

Our data indicates that private companies own 11% of the company’s shares. It might be worth pursuing the matter further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.

Next steps:

I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Consider, for example, the ever-present specter of investment risk. We have identified 2 warning signs with Renrui Human Resources Technology Holdings (at least 1 of concern), and understanding them should be part of your investment process.

If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.