Yesterday, shares of AMTD Digital (NYSE:HKD) stock closed higher by just over 200% on no company-specific news. Last August, shares peaked to as high as $2,555, which was driven by retail speculation and the r/WallStreetBets crowd. Based in Hong Kong, the company operates as digital solutions platform that offers services for the finance, media, investments and marketing industries. Furthermore, the company is a subsidiary of AMTD IDEA Group (NYSE:AMTD). Trading at penny stock levels, AMTD stock is up 14% over the past five trading days.
So, what exactly does the business behind HKD stock do? AMTD Digital’s mission statement is as follows:
“Fusing synergistically all elements within the AMTD SpiderNet ecosystem using digital means, harnessing and magnifying the power from each partner to create a force with meaningful and influential social, technological, and economic impact.”
However, the focus hasn’t really been on what AMTD Digital does. Rather, traders have solely been focused on the volatile price action of HKD stock.
Who’s Betting on HKD and AMTD Stock?
During fiscal 2022, AMTD Digital reported that net profit after taxes increased by 17% year-over-year (YOY). Meanwhile, total net assets clocked in at $396 million on top of zero debt. During the year, the company also took control of AMTD Assets Group.
With that in mind, let’s take a look at the investors betting on HKD stock, courtesy of Whale Wisdom:
- Morgan Stanley (NYSE:MS): 2 shares. Morgan Stanley purchased its entire stake during the third quarter.
- Tower Research Capital: 1 share. Tower Research also purchased its entire stake during Q3.
As you can tell, HKD stock has virtually no institutional ownership in the United States. The total ownership of three shares speaks volumes to the potential of HKD. On the other hand, institutional ownership of AMTD stock is much stronger than HKD, although still generally weak. Let’s take a look:
- Morgan Stanley: 637,400 shares. Morgan Stanley’s position remained unchanged during Q3.
- Jane Street: 76,279 shares. Jane Street purchased its entire stake during Q3.
- Mariner: 70,221 shares. Mariner purchased its entire stake during Q3.
- Buckingham Strategic Partners: 50,000 shares. Buckingham purchased its entire stake during Q3.
- Advisor Group Holdings: 38,000 shares. Advisor Group purchased its entire stake during Q3.
Please note that this list only includes investors who filed a Q3 position update. For example, AMTD Group Chairman Calvin Choi owns 62.62 million shares, although that figure is only accurate as of Q4 2020.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.