Retail Investors Invested in HF Foods Group Inc. (NASDAQ:HFFG) Up 10% Last Week, Insiders Rewarded Too

If you want to know who really controls HF Foods Group Inc. (NASDAQ: HFFG), then you’ll have to look at the composition of its share registry. We can see that individual investors hold the lion’s share of the company with 55% ownership. In other words, the group faces the maximum upside potential (or downside risk).

After a 10% rise in the stock price last week, individual investors benefited the most, but insiders who own 27% of the shares also profited from the increase.

Let’s dig deeper into each type of HF Foods Group owner, starting with the table below.

Our analysis indicates that HFFG is potentially undervalued!

NasdaqCM: HFFG Ownership Breakdown November 11, 2022

What does institutional ownership tell us about the HF Foods group?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

HF Foods Group already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth taking a look at the earnings history of HF Foods Group below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqCM: HFFG Earnings and Revenue Growth November 11, 2022

HF Foods Group is not owned by hedge funds. Raymond Ni is currently the largest shareholder, with 11% of the shares outstanding. In comparison, the second and third shareholders hold approximately 11% and 5.0% of the shares. Xiao Mou Zhang, who is the third shareholder, also holds the title of member of the board of directors.

Looking at our ownership data, we found that 25 of the major shareholders collectively own less than 50% of the share register, implying that no single individual holds a majority stake.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. We don’t see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.

Owned by HF Foods Group Insiders

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 answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

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 have a significant stake in HF Foods Group Inc. Insiders have a $69 million stake in this $259 million business. 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, who are usually individual investors, have a substantial 55% stake in HF Foods Group, which suggests it is quite a popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

We can see that private companies hold 4.4% of the shares issued. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand HF Foods Group, we need to consider many other factors. Like risks, for example. Every business has them, and we’ve spotted 3 warning signs for HF Foods Group (of which 1 is significant!) that you should know.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.

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.

Valuation is complex, but we help make it simple.

Find out if HF Food Group is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

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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.

Robert D. Coleman