Market cap

FingerMotion, Inc. (NASDAQ:FNGR) Market Cap Dropped $36 Million Last Week; Individual investors have paid the price

If you want to know who actually controls FingerMotion, Inc. (NASDAQ: FNGR), you’ll need to look at the composition of its share ledger. The group holding the largest number of shares in the company, around 56% to be precise, are individual investors. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

While insiders who hold 43% have been under pressure after the market capitalization fell to $296 million last week, retail investors suffered the most losses.

In the table below, we zoom in on the different property groups of FingerMotion.

See our latest analysis for FingerMotion

distribution of property

What does institutional ownership tell us about FingerMotion?

Institutional investors typically 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.

Since institutions only own a small portion of FingerMotion, many may not have spent much time considering the stock. But it is clear that some did; and they liked her enough to join. So if the business itself can improve over time, we may well see more institutional buyers in the future. When several institutional investors wish to buy shares, we often see a rise in the price of the share. Past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

earnings-and-revenue-growth

earnings-and-revenue-growth

We note that hedge funds have no significant investment in FingerMotion. Yang Yeat Choe is currently the company’s largest shareholder with 16% of the outstanding shares. For context, the second shareholder owns approximately 9.9% of the outstanding shares, followed by a 7.4% ownership by the third shareholder. Additionally, we found that Martin Shen, the CEO, owns 1.6% of the shares allocated to his name.

Looking at our ownership data, we found that 21 of the major shareholders collectively own less than 50% of the share register, implying that no single individual holds a majority stake.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.

Insider Ownership of FingerMotion

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders hold a significant stake in FingerMotion, Inc. It has a market capitalization of just $296 million, and insiders own $127 million of stock in their own name. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.

General public property

The general public, consisting primarily of individual investors, collectively owns 56% of FingerMotion’s stock. This size of ownership gives mainstream investors a certain collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed corporate acquisitions.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Take risks for example – FingerMotion has 3 warning signs (and 2 that are potentially serious) that we think you should know about.

Sure this may not be the best stock to buy. So take a look at this free free list of interesting companies.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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