Institutions along with retail investors who hold considerable shares inZhejiang Shuanghuan Driveline Co.,Ltd. (SZSE:002472) come under pressure; lose 10% of holdings value

Key Insights

• Zhejiang Shuanghuan DrivelineLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 25 investors have a majority stake in the company with 47% ownership
• Insider ownership in Zhejiang Shuanghuan DrivelineLtd is 24%

If you want to know who really controls Zhejiang Shuanghuan Driveline Co.,Ltd. (SZSE:002472), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 47% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While the holdings of retail investors took a hit after last week’s 10% price drop, institutions with their 27% holdings also suffered.

Let's delve deeper into each type of owner of Zhejiang Shuanghuan DrivelineLtd, beginning with the chart below.

View our latest analysis for Zhejiang Shuanghuan DrivelineLtd

What Does The Institutional Ownership Tell Us About Zhejiang Shuanghuan DrivelineLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Zhejiang Shuanghuan DrivelineLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Zhejiang Shuanghuan DrivelineLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Zhejiang Shuanghuan DrivelineLtd is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Zhejiang Shuanghuan DrivelineLtd's case, its Other Key Executive, Changhong Wu, is the largest shareholder, holding 7.2% of shares outstanding. Shaoguang Li is the second largest shareholder owning 4.9% of common stock, and Yiqing Jiang holds about 3.5% of the company stock. Interestingly, the third-largest shareholder, Yiqing Jiang is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Zhejiang Shuanghuan DrivelineLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Zhejiang Shuanghuan Driveline Co.,Ltd.. It has a market capitalization of just CN¥22b, and insiders have CN¥5.3b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 47% stake in Zhejiang Shuanghuan DrivelineLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.