While institutions own 29% of Zhejiang Shuanghuan Driveline Co.,Ltd. (SZSE:002472), retail investors are its largest shareholders with 49% ownership

Key Insights

• Significant control over Zhejiang Shuanghuan DrivelineLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 45% of the company
• Insider ownership in Zhejiang Shuanghuan DrivelineLtd is 20%

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. The group holding the most number of shares in the company, around 49% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

And institutions on the other hand have a 29% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

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?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Zhejiang Shuanghuan DrivelineLtd. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Zhejiang Shuanghuan DrivelineLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Zhejiang Shuanghuan DrivelineLtd. Our data suggests that Changhong Wu, who is also the company's Other Key Executive, holds the most number of shares at 7.2%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. Yiqing Jiang is the second largest shareholder owning 3.5% of common stock, and Jianfeng Chen holds about 3.3% of the company stock. Interestingly, the second and third-largest shareholders also happen to be the Senior Key Executive and Member of Corporate Board, respectively. This once again signifies considerable 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.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Zhejiang Shuanghuan DrivelineLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Zhejiang Shuanghuan Driveline Co.,Ltd.. It has a market capitalization of just CN¥32b, and insiders have CN¥6.3b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 49% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.