Key Insights

• Insiders appear to have a vested interest in Big Tree Cloud Holdings' growth, as seen by their sizeable ownership

• 88% of the company is held by a single shareholder (Wenquan Zhu)

• 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 Big Tree Cloud Holdings Limited (NASDAQ:DSY), it is important to understand the ownership structure of the business. With 88% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

So, insiders of Big Tree Cloud Holdings have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

In the chart below, we zoom in on the different ownership groups of Big Tree Cloud Holdings.

Check out our latest analysis for Big Tree Cloud Holdings

What Does The Lack Of Institutional Ownership Tell Us About Big Tree Cloud Holdings?

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 many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Big Tree Cloud Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Big Tree Cloud Holdings is not owned by hedge funds. With a 88% stake, CEO Wenquan Zhu is the largest shareholder. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers.

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 Big Tree Cloud Holdings

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.