Both individual investors who control a good portion of Zhejiang Huatie Emergency Equipment Science & Technology Co.,Ltd. (SHSE:603300) along with institutions must be dismayed after last week's 4.9% decrease

Key Insights

• The considerable ownership by individual investors in Zhejiang Huatie Emergency Equipment Science & TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• A total of 25 investors have a majority stake in the company with 47% ownership
• 12% of Zhejiang Huatie Emergency Equipment Science & TechnologyLtd is held by insiders

To get a sense of who is truly in control of Zhejiang Huatie Emergency Equipment Science & Technology Co.,Ltd. (SHSE:603300), it is important to understand the ownership structure of the business. With 53% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While institutions, who own 22% shares weren’t spared from last week’s CN¥510m market cap drop, individual investors as a group suffered the maximum losses

In the chart below, we zoom in on the different ownership groups of Zhejiang Huatie Emergency Equipment Science & TechnologyLtd.

See our latest analysis for Zhejiang Huatie Emergency Equipment Science & TechnologyLtd

What Does The Institutional Ownership Tell Us About Zhejiang Huatie Emergency Equipment Science & TechnologyLtd?

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 Huatie Emergency Equipment Science & TechnologyLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Huatie Emergency Equipment Science & TechnologyLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Zhejiang Huatie Emergency Equipment Science & TechnologyLtd. Our data shows that Dan Feng Hu is the largest shareholder with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.9% and 4.9% of the stock.

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 Huatie Emergency Equipment Science & TechnologyLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

It seems insiders own a significant proportion of Zhejiang Huatie Emergency Equipment Science & Technology Co.,Ltd.. Insiders own CN¥1.2b worth of shares in the CN¥9.9b company. That's quite meaningful. 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 substantial 53% stake in Zhejiang Huatie Emergency Equipment Science & TechnologyLtd, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

It seems that Private Companies own 14%, of the Zhejiang Huatie Emergency Equipment Science & TechnologyLtd stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Zhejiang Huatie Emergency Equipment Science & TechnologyLtd better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Zhejiang Huatie Emergency Equipment Science & TechnologyLtd (including 1 which is a bit concerning) .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com