Ficont Industry (Beijing) Co., Ltd.'s (SHSE:605305) CEO Zhixin Liu is the most upbeat insider, and their holdings increased by 8.0% last week

Key Insights

• Insiders appear to have a vested interest in Ficont Industry (Beijing)'s growth, as seen by their sizeable ownership
• The top 5 shareholders own 51% of the company
• Institutional ownership in Ficont Industry (Beijing) is 36%

To get a sense of who is truly in control of Ficont Industry (Beijing) Co., Ltd. (SHSE:605305), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 39% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 8.0% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Ficont Industry (Beijing).

See our latest analysis for Ficont Industry (Beijing)

What Does The Institutional Ownership Tell Us About Ficont Industry (Beijing)?

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.

Ficont Industry (Beijing) 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 Ficont Industry (Beijing)'s earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Ficont Industry (Beijing). Looking at our data, we can see that the largest shareholder is the CEO Zhixin Liu with 34% of shares outstanding. The second and third largest shareholders are CJEP Venture Capital Management Co., Ltd. and E Fund Management Co., Ltd., with an equal amount of shares to their name at 5.0%.

On looking further, we found that 51% 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.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Ficont Industry (Beijing)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our information suggests that insiders maintain a significant holding in Ficont Industry (Beijing) Co., Ltd.. It has a market capitalization of just CN¥5.2b, and insiders have CN¥2.0b worth of shares in their own names. 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 24% stake in Ficont Industry (Beijing). 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.

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 learn about the 2 warning signs we've spotted with Ficont Industry (Beijing) (including 1 which is potentially serious) .

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