Individual investors invested in Yorhe Fluid Intelligent Control Co., Ltd. (SZSE:002795) copped the brunt of last week's CN¥232m market cap decline

Key Insights

• The considerable ownership by individual investors in Yorhe Fluid Intelligent Control indicates that they collectively have a greater say in management and business strategy
• A total of 20 investors have a majority stake in the company with 44% ownership
• Insiders own 43% of Yorhe Fluid Intelligent Control

A look at the shareholders of Yorhe Fluid Intelligent Control Co., Ltd. (SZSE:002795) can tell us which group is most powerful. The group holding the most number of shares in the company, around 56% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

While insiders who own 43% came under pressure after market cap dropped to CN¥1.7b last week,individual investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Yorhe Fluid Intelligent Control.

Check out our latest analysis for Yorhe Fluid Intelligent Control

What Does The Lack Of Institutional Ownership Tell Us About Yorhe Fluid Intelligent Control?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Yorhe Fluid Intelligent Control's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Yorhe Fluid Intelligent Control is not owned by hedge funds. The company's largest shareholder is Deli Cao, with ownership of 11%. With 7.3% and 5.5% of the shares outstanding respectively, Chen Yun and Ying Xue Qing are the second and third largest shareholders. In addition, we found that Zhongdong Xian, the CEO has 0.6% of the shares allocated to their name.

On studying our ownership data, we found that 20 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Yorhe Fluid Intelligent Control

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.

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 Yorhe Fluid Intelligent Control Co., Ltd.. Insiders have a CN¥745m stake in this CN¥1.7b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of Yorhe Fluid Intelligent Control shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Yorhe Fluid Intelligent Control better, we need to consider many other factors. For instance, we've identified 1 warning sign for Yorhe Fluid Intelligent Control that you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.