MicroAlgo Inc.'s (NASDAQ:MLGO) biggest owners are public companies who got richer after stock soared 260% last week

In This Article:

Key Insights

  • MicroAlgo's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public

  • 58% of the business is held by the top 2 shareholders

  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls MicroAlgo Inc. (NASDAQ:MLGO), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 48% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, public companies benefitted the most after the company's market cap rose by US$81m last week.

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

View our latest analysis for MicroAlgo

ownership-breakdown
ownership-breakdown

What Does The Lack Of Institutional Ownership Tell Us About MicroAlgo?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. 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 MicroAlgo, for yourself, below.

earnings-and-revenue-growth
earnings-and-revenue-growth

Hedge funds don't have many shares in MicroAlgo. The company's largest shareholder is WiMi Hologram Cloud Inc., with ownership of 48%. With 9.2% and 3.0% of the shares outstanding respectively, Masaya Otsuka and Joyous JD Limited are the second and third largest shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 58% stake.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of MicroAlgo

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.