![]() Simply Wall St has no position in any stocks mentioned. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. We aim to bring you long-term focused analysis driven by fundamental data. 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 provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). ![]() Have feedback on this article? Concerned about the content? Get in touch with us directly. This may not be consistent with full year annual report figures. 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. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. Be aware that Pinduoduo is showing 1 warning sign in our investment analysis, you should know about.īut ultimately it is the future, not the past, that will determine how well the owners of this business will do. While it is well worth considering the different groups that own a company, there are other factors that are even more important. The businesses may be similar, or work together. We can't be certain but it is quite possible this is a strategic stake. It appears to us that public companies own 15% of Pinduoduo. But other times, private equity is selling out, having taking the company public. Some might like this, because private equity are sometimes activists who hold management accountable. With an ownership of 6.6%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. The general public- including retail investors - own 14% stake in the company, and hence can't easily be ignored. You can click here to see if those insiders have been buying or selling. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. Insiders own US$31b worth of shares in the US$89b company. It seems insiders own a significant proportion of Pinduoduo Inc. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. I generally consider insider ownership to be a good thing. Of course, keep in mind that there are other factors to consider, too. So it is worth checking the past earnings trajectory of Pinduoduo, (below). It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. ![]() This can indicate that the company has a certain degree of credibility in the investment community. We can see that Pinduoduo does have institutional investors and they hold a good portion of the company's stock. We would expect most companies to have some institutions on the register, especially if they are growing. Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. Ownership-breakdown What Does The Institutional Ownership Tell Us About Pinduoduo?
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