Retail investors among Anhui Yingliu Electromechanical Co., Ltd.'s (SHSE:603308) largest stockholders and were hit after last week's 4.5% price drop

Key Insights

• Anhui Yingliu Electromechanical's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 25 shareholders own 49% of the company
• Institutional ownership in Anhui Yingliu Electromechanical is 13%

Every investor in Anhui Yingliu Electromechanical Co., Ltd. (SHSE:603308) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 50% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, retail investors endured the biggest losses as the stock fell by 4.5%.

In the chart below, we zoom in on the different ownership groups of Anhui Yingliu Electromechanical.

Check out our latest analysis for Anhui Yingliu Electromechanical

What Does The Institutional Ownership Tell Us About Anhui Yingliu Electromechanical?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Anhui Yingliu Electromechanical. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Anhui Yingliu Electromechanical's historic earnings and revenue below, but keep in mind there's always more to the story.

Anhui Yingliu Electromechanical is not owned by hedge funds. Huoshan Yingliu Investment Management Co., Ltd. is currently the largest shareholder, with 27% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.8% and 4.5% of the stock. Additionally, the company's CEO Du Yingliu directly holds 1.7% of the total shares outstanding.

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 studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Anhui Yingliu Electromechanical

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.

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.

Our most recent data indicates that insiders own some shares in Anhui Yingliu Electromechanical Co., Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥320m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 50% stake in Anhui Yingliu Electromechanical. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 33%, of the Anhui Yingliu Electromechanical stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Anhui Yingliu Electromechanical better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Anhui Yingliu Electromechanical (of which 1 is a bit concerning!) you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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