Insiders were the biggest winners as D&O Home Collection Group Co.,LTD's (SZSE:002798) market cap grew by CN¥196m last week

Key Insights

• Significant insider control over D&O Home Collection GroupLTD implies vested interests in company growth
• A total of 9 investors have a majority stake in the company with 51% ownership
• 13% of D&O Home Collection GroupLTD is held by Institutions

To get a sense of who is truly in control of D&O Home Collection Group Co.,LTD (SZSE:002798), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 46% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit CN¥1.3b market cap following a 17% gain in the stock.

Let's delve deeper into each type of owner of D&O Home Collection GroupLTD, beginning with the chart below.

View our latest analysis for D&O Home Collection GroupLTD

What Does The Institutional Ownership Tell Us About D&O Home Collection GroupLTD?

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.

D&O Home Collection GroupLTD already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 D&O Home Collection GroupLTD's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in D&O Home Collection GroupLTD. Our data shows that Jin Liu is the largest shareholder with 8.5% of shares outstanding. With 8.4% and 8.3% of the shares outstanding respectively, Zhi Xiong Wu and Wei Chen are the second and third largest shareholders. Note that the second and third-largest shareholders are also Chief Executive Officer and Vice Chairman, respectively, meaning that the company's top shareholders are insiders.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of D&O Home Collection GroupLTD

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

It seems insiders own a significant proportion of D&O Home Collection Group Co.,LTD. Insiders have a CN¥618m stake in this CN¥1.3b 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

With a 42% ownership, the general public, mostly comprising of individual investors, have some degree of sway over D&O Home Collection GroupLTD. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

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. Be aware that D&O Home Collection GroupLTD is showing 1 warning sign in our investment analysis , you should know about...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.