Exploring Zhongchao Inc. (ZCMD) Investor Profile: Who’s Buying and Why?

You're looking at Zhongchao Inc. (ZCMD) and asking the right question: who is actually buying this stock, and what's their play? Honestly, the investor profile is a fascinating, high-risk case study in a micro-cap. The stock has plummeted nearly 48.25% over the last year to a price around $0.60 a share, and the institutional interest is almost nonexistent: only 3 institutional owners hold a minuscule 0.18% of the shares outstanding, totaling just 75,722 shares as of Q2 2025. But here's the twist: while big money is mostly out, insiders own a substantial 25.51% of the company, and one of the few active institutional players, UBS Group AG, actually ramped up its position by 76.97%. With a market capitalization (market cap) of just under $15 million and the company posting a net loss of $-965.25 thousand in the last half-year, is this a deep-value turnaround bet, or just a high-volatility trade with an average daily volume of only 14.10K? Let's defintely dig into the few who are making a move and see what they see.

Who Invests in Zhongchao Inc. (ZCMD) and Why?

You are looking at Zhongchao Inc. (ZCMD) and seeing a stock that is less about institutional stability and more about high-stakes retail speculation. The investor profile is dominated by individual traders betting on a high-growth turnaround in the Chinese digital health sector, often overlooking the company's recent revenue struggles.

The core takeaway is that ZCMD is a momentum-driven, retail-heavy stock: its movements are dictated by news and short-term trading, not by large, long-term institutional capital. The low share price, which was around $0.71 as of late October 2025, makes it a classic speculative play. It's a high-risk, high-reward bet on future execution.

Key Investor Types: Retail Dominance and Minimal Institutional Footprint

Unlike a BlackRock holding where institutional investors (like mutual funds and pension funds) own the majority of shares, Zhongchao Inc.'s ownership structure is heavily skewed toward the individual, or retail, investor. This is a critical distinction that drives the stock's volatility.

As of the latest filings in the second quarter of 2025, the institutional ownership is remarkably small. Only 3 institutional owners filed 13F forms, holding a total of just 75,722 shares. To put that in perspective, the largest disclosed institutional holding, from Hrt Financial Lp, was valued at a mere $36 thousand as of June 30, 2025. This tiny institutional presence means the stock lacks a major stabilizing force, so any significant buying or selling by individual investors can cause wild price swings.

• Institutional Holdings: 75,722 shares total.
• Hedge Fund Ownership: Effectively 0%, reinforcing the retail focus.
• Retail Investor Share: The overwhelming majority, fueling momentum swings.

Investment Motivations: Betting on Turnaround and Digital Health Growth

The investors who are buying Zhongchao Inc. are primarily motivated by a speculative growth narrative, not current financial performance. Honestly, the fundamental numbers right now are tough: the company's revenue has been in decline, falling 18% in the last year, and the trailing twelve months (TTM) net profit margin is -4.05%. So, why the interest?

Investors are focused on the company's position in the high-potential Chinese healthcare education and digital health solutions market. News of strategic partnerships, particularly in digital health, has recently 'ignited optimism' for new revenue streams. Plus, the balance sheet shows strong liquidity, with cash and short-term investments totaling over $13 million against a modest market capitalization of about US$16.807 million. This cash buffer gives the company runway to execute its turnaround strategy.

You're buying a future story, defintely not a current earnings report.

Investment Strategies: Short-Term Momentum and Speculation

Given the high retail ownership and volatility, the dominant strategies are short-term trading and momentum investing. This isn't a long-term 'buy-and-hold' value stock. The price-to-earnings (P/E) ratio is negative, at -3.38 as of November 14, 2025, which is typical of a company where earnings are not the primary driver.

We saw a massive price jump of 28% in one month earlier in 2025, which is a clear sign of momentum traders piling in on positive news. However, by November 2025, the overall moving average trend was leaning bearish, indicating short-term traders are actively selling. The high short sale ratio of 7.27% as of mid-November 2025 also confirms significant speculative activity, with traders actively betting on a price decline.

Here's the quick math on the risk: The stock's 52-week range spans from a low of about $0.57 to a high of $2.50. That huge swing shows the stock is a vehicle for quick gains, not a stable capital preservation tool. If you want to understand the underlying financial risks these traders are taking, you should read Breaking Down Zhongchao Inc. (ZCMD) Financial Health: Key Insights for Investors.

Institutional Ownership and Major Shareholders of Zhongchao Inc. (ZCMD)

You are looking at Zhongchao Inc. (ZCMD) and seeing a stock that is largely driven by forces outside of the big institutional money. The direct takeaway here is that institutional ownership is remarkably low, sitting at approximately 0.31% of total shares outstanding as of the second quarter of the 2025 fiscal year. This means the stock's volatility and price action are mostly a function of retail trading and insider activity, not the steady hand of major funds.

Top Institutional Investors and Their Shareholdings

When you look at the 13F filings for the quarter ending June 30, 2025, the list of major institutional holders is short, which is typical for a micro-cap company like Zhongchao Inc. (ZCMD). The total value of institutional holdings is small, just $56,000 (in thousands) based on the reported positions. This is a tiny fraction of the company's market capitalization, which was around $17.7 million in November 2025. The two most significant positions are held by high-frequency trading and major financial services firms, suggesting they are likely holding for short-term arbitrage or as part of a much larger, diversified portfolio.

Here's the quick math on the top two holders:

Changes in Ownership: Institutional Movement

The recent activity shows a mixed, but overall net positive, movement from institutions, though the numbers are small. In the second quarter of 2025, the total institutional shares held were 75,722. The key movement was the two institutions initiating or increasing their positions, totaling 60,681 shares in new or increased holdings. But, still, you saw one firm, Two Sigma Investments, Lp, completely sell out of their 13,828 shares. This kind of churn is common in micro-cap stocks; it's a sign of short-term trading strategies rather than long-term conviction.

The low institutional interest is defintely something to note. It contrasts sharply with the high insider ownership, which stands at approximately 28.63%. This structure means company management and affiliates hold the majority of the concentrated stock, not external funds. The low institutional float, coupled with a low overall float (around 1.29 million units), is what makes the stock so volatile.

• Total Institutional Shares Held: 75,722
• Increased/New Positions: 60,681 shares
• Decreased/Sold Out Positions: 13,828 shares

Impact of Institutional Investors on Zhongchao Inc. (ZCMD)

Given the low institutional stake of 0.31%, these large investors play a minimal role in Zhongchao Inc.'s stock price or corporate strategy. The stock is a classic low-float, small-cap name, meaning its price is highly susceptible to sudden, large swings based on retail speculation or minor news, not institutional buying pressure. For a deeper dive into the company's fundamentals, you should read Breaking Down Zhongchao Inc. (ZCMD) Financial Health: Key Insights for Investors.

In a company with high institutional ownership, say 60% like a Blackrock-held ETF, those funds act as a stabilizing force and often influence major decisions. Here, the institutions are simply along for the ride, and their small positions won't stop a 50% single-day spike or drop. So, for you as an investor, focus less on the 13F filings and more on the company's cash burn rate and revenue trends, as those are the real drivers of value in this part of the market.

The main role these few institutional investors play is simply providing liquidity. Their small trades, even if they are selling, don't signal a major shift in the investment thesis for Zhongchao Inc. Instead, look to the high insider ownership as the primary control mechanism for the company's direction.

Key Investors and Their Impact on Zhongchao Inc. (ZCMD)

You're looking at Zhongchao Inc. (ZCMD) and wondering who's buying in, and honestly, the investor profile tells a clear story: this is a stock primarily driven by high-velocity, small-stake institutional trading and retail speculation, not large, long-term anchor funds. The institutional footprint is light, meaning you won't find BlackRock or Vanguard holding massive, influential stakes here.

The company's relatively small market capitalization, recently around $17.7 million as of November 2025, means that even modest buying or selling by smaller institutions can create significant price movement. This is a micro-cap dynamic; a few thousand shares can move the needle. It's defintely not a blue-chip situation where the big funds sit quietly for a decade.

The Institutional Footprint: Small Stakes, High Velocity

The institutional ownership (firms managing over $100 million in assets) in Zhongchao Inc. (ZCMD) is characterized by quantitative trading firms and smaller hedge funds taking tactical, short-term positions. The influence of these players is less about corporate governance and more about market signaling and liquidity.

For example, recent filings from the second quarter of 2025 show a mix of new entrants and exits, reflecting a high turnover in the shareholder base. This quick-in, quick-out strategy is typical for stocks with a low float. Here's the quick math on three notable moves from the Q2 2025 filings:

UBS Group Ag, a major global bank, increasing its stake by almost 77% is a significant percentage move, but the overall dollar value is tiny-just $20 thousand. This suggests a systematic, non-fundamental trading strategy, likely tied to arbitrage or momentum, rather than a deep conviction in the company's long-term value proposition. Two Sigma Investments, Lp's decision to liquidate their position entirely further highlights this high-churn environment.

Influence and Recent Capital Moves

Because there are no large, concentrated positions, company decisions are largely insulated from external activist investor pressure. The primary influence on the stock price comes from news and market sentiment, not shareholder activism. For instance, positive news about strategic partnerships in digital health solutions has previously sparked significant single-day surges, like the 16.35% jump seen in June 2025, showing that retail and momentum traders are the real short-term drivers.

Recent corporate actions are also key to understanding the investor landscape. In August 2025, Zhongchao Inc. announced the adoption of a 2025 Equity Incentive Plan with a 10 million share limit. This move, which can dilute existing shareholders, is a signal that the company is focused on retaining and incentivizing management and employees, a common practice for growth-focused, smaller companies, but one that investors must monitor for impact on earnings per share (EPS).

The financial backdrop for these investment decisions is a company still working toward profitability. The latest quarterly report for the period ending June 2025 showed revenue of $5.60 million and an EPS of -$0.04. The short sale ratio, which measures the percentage of tradable shares sold short, was around 7.27% in November 2025, indicating a significant portion of the market is betting against the stock, which adds another layer of volatility for buyers.

If you want a deeper dive into the fundamentals that underpin these investor movements, you should review the company's operational history and core business model: Zhongchao Inc. (ZCMD): History, Ownership, Mission, How It Works & Makes Money.

• Monitor institutional trading for volume spikes, not just position size.
• Factor in the high short interest (7.27%) as a source of potential short squeezes.
• Watch for news of new contracts or partnerships; they move the stock more than 13F filings.

Next step: Financial Analyst: Calculate the potential dilution impact of the 10 million share incentive plan on the current share count by end-of-year.

Market Impact and Investor Sentiment

You're looking at Zhongchao Inc. (ZCMD) and wondering who is buying this stock and what the collective mindset is, and the answer is complex: the current investor sentiment is a volatile mix of bearish technical signals and speculative, near-term optimism that ignores poor fundamentals.

As of late November 2025, technical analysis signals lean toward a Neutral mid-term outlook, but the overall moving average trend is decidedly bearish. The stock's price on November 21, 2025, was $0.590, reflecting a -15.19% drop over the preceding 10 days, suggesting a negative short-term trajectory. Still, some algorithms hold a positive evaluation for the immediate future.

The market has reacted sharply to both good and bad news, indicating a highly sensitive and speculative shareholder base. For example, in June 2025, the stock surged by 16.35% in a single day on news of lucrative contracts and a strategic partnership in digital health solutions. That's a massive, quick move. This volatility is a key characteristic of the investor profile, which is likely dominated by short-term traders.

• Stock is down -15.19% over 10 days (Nov 2025).
• Short sale ratio of 7.27% suggests a price bottom may be near.
• Market capitalization sits at a tiny $2.743M (Nov 21, 2025).

The Investor Profile: Speculation vs. Fundamentals

The core of the Zhongchao Inc. investor base appears to be retail and speculative traders, drawn to the stock's penny-stock status and high volatility. The daily average volatility for the week leading up to late November 2025 was a staggering 12.58%. This kind of movement is not what you see in institutional-heavy stocks; it's a playground for day traders.

The 'why' behind the buying, despite the bearish technicals, is likely a bet on a turnaround or a short-term price spike. Back in June 2025, the stock was trading at a Price-to-Sales (P/S) ratio of 2.3x, which was significantly higher than the Consumer Services industry average of 1.6x. Here's the quick math: paying a premium of nearly 44% over the industry P/S multiple when revenue is declining by 18% (in the last year) shows investors are defintely ignoring the current financial reality and hoping for a major future catalyst. You can read more about the company's background and business model at Zhongchao Inc. (ZCMD): History, Ownership, Mission, How It Works & Makes Money.

Analyst Perspectives and the 2025 Financial Reality

Traditional analyst coverage for Zhongchao Inc. is essentially non-existent, which is common for smaller, highly volatile stocks. So, we have to rely on algorithmic and AI-driven insights, and they are mixed, reflecting the stock's contradictory signals. TipRanks' AI Analyst, Spark, rates the stock as Neutral as of September 2025, citing significant financial struggles and a bearish technical trend. Other algorithmic models are less forgiving, with some issuing a Strong Sell signal based on technical indicators.

What this estimate hides is the grim financial picture from the first half of the 2025 fiscal year, which is the anchor for any realistic valuation. The company reported a decline in total revenues to $5.6 million for the six months ending June 30, 2025, down from $8.3 million in the same period a year prior. More critically, the company shifted from a net income of $182,933 in H1 2024 to a net loss of $862,319 in H1 2025.

This table summarizes the core 2025 financial data that key investors-the ones focused on fundamentals-are weighing:

The split in forecasts is telling: one algorithm projects a 1-month price of $1.39, a 110.32% jump, while another projects the average 2025 price at $0.4715, a -27.46% fall from a recent price point. This massive divergence shows the market has no consensus on ZCMD's direction, and any investment here is a high-risk, high-reward bet on a dramatic, near-term catalyst.