Retail investors are Zhejiang XCC Group Co.,Ltd's (SHSE:603667) biggest owners and were hit after market cap dropped CN¥612m

Key Insights

• The considerable ownership by retail investors in Zhejiang XCC GroupLtd indicates that they collectively have a greater say in management and business strategy
• The top 13 shareholders own 50% of the company
• 32% of Zhejiang XCC GroupLtd is held by insiders

If you want to know who really controls Zhejiang XCC Group Co.,Ltd (SHSE:603667), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 43% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 10.0% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 32% stock also took a hit.

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

View our latest analysis for Zhejiang XCC GroupLtd

What Does The Institutional Ownership Tell Us About Zhejiang XCC GroupLtd?

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 XCC GroupLtd 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 XCC GroupLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Zhejiang XCC GroupLtd is not owned by hedge funds. The company's CEO Feng Zhang is the largest shareholder with 20% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.1% and 6.3%, of the shares outstanding, respectively.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Zhejiang XCC GroupLtd

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. 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.

It seems insiders own a significant proportion of Zhejiang XCC Group Co.,Ltd. Insiders own CN¥1.7b worth of shares in the CN¥5.5b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 43% stake in Zhejiang XCC GroupLtd. 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

Our data indicates that Private Companies hold 6.8%, of the company's shares. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Zhejiang XCC GroupLtd .

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.