Insiders with their considerable ownership were the key benefactors as Zbom Home Collection Co.,Ltd (SHSE:603801) touches CN¥5.6b market cap

Key Insights

• Insiders appear to have a vested interest in Zbom Home CollectionLtd's growth, as seen by their sizeable ownership
• A total of 5 investors have a majority stake in the company with 52% ownership
• 20% of Zbom Home CollectionLtd is held by Institutions

A look at the shareholders of Zbom Home Collection Co.,Ltd (SHSE:603801) can tell us which group is most powerful. With 48% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit CN¥5.6b market cap following a 29% gain in the stock.

Let's delve deeper into each type of owner of Zbom Home CollectionLtd, beginning with the chart below.

View our latest analysis for Zbom Home CollectionLtd

What Does The Institutional Ownership Tell Us About Zbom Home CollectionLtd?

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.

Zbom Home CollectionLtd 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. 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 Zbom Home CollectionLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Zbom Home CollectionLtd. Our data shows that Zhi Yong Sun is the largest shareholder with 21% of shares outstanding. With 20% and 3.7% of the shares outstanding respectively, Bang Shun Xu and China Asset Management Co. Ltd. are the second and third largest shareholders. Bang Shun Xu, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On looking further, we found that 52% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Zbom Home CollectionLtd

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders maintain a significant holding in Zbom Home Collection Co.,Ltd. Insiders own CN¥2.7b worth of shares in the CN¥5.6b 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-- including retail investors -- own 28% stake in the company, and hence can't easily be ignored. 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. To that end, you should learn about the 2 warning signs we've spotted with Zbom Home CollectionLtd (including 1 which is concerning) .

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.