Key Insights

• Richtech Robotics' significant insider ownership suggests inherent interests in company's expansion

• The top 2 shareholders own 56% of the company

• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Richtech Robotics Inc. (NASDAQ:RR) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 74% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by US$22m last week.

In the chart below, we zoom in on the different ownership groups of Richtech Robotics.

See our latest analysis for Richtech Robotics

What Does The Lack Of Institutional Ownership Tell Us About Richtech Robotics?

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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Richtech Robotics' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Hedge funds don't have many shares in Richtech Robotics. Looking at our data, we can see that the largest shareholder is the CEO Zhenwu Huang with 44% of shares outstanding. With 11% and 5.7% of the shares outstanding respectively, Zhenqiang Huang and Zhao Zilong are the second and third largest shareholders. Interestingly, the second-largest shareholder, Zhenqiang Huang is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.