Tianjin LVYIN Landscape and Ecology Construction Co., Ltd (SZSE:002887) adds CN¥217m in market cap and insiders have a 51% stake in that gain

Key Insights

• Insiders appear to have a vested interest in Tianjin LVYIN Landscape and Ecology Construction's growth, as seen by their sizeable ownership
• 64% of the business is held by the top 3 shareholders
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Tianjin LVYIN Landscape and Ecology Construction Co., Ltd (SZSE:002887) should be aware of the most powerful shareholder groups. With 51% stake, individual insiders possess the maximum shares in the company. 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 were the biggest beneficiaries of last week’s 10% gain.

Let's delve deeper into each type of owner of Tianjin LVYIN Landscape and Ecology Construction, beginning with the chart below.

See our latest analysis for Tianjin LVYIN Landscape and Ecology Construction

What Does The Institutional Ownership Tell Us About Tianjin LVYIN Landscape and Ecology Construction?

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.

Since institutions own only a small portion of Tianjin LVYIN Landscape and Ecology Construction, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Tianjin LVYIN Landscape and Ecology Construction. Our data shows that Yun Hui Lu is the largest shareholder with 31% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 18% and 15%, of the shares outstanding, respectively. Yong Qi, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Tianjin LVYIN Landscape and Ecology Construction

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our information suggests that insiders own more than half of Tianjin LVYIN Landscape and Ecology Construction Co., Ltd. This gives them effective control of the company. So they have a CN¥1.2b stake in this CN¥2.3b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Tianjin LVYIN Landscape and Ecology Construction. 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

We can see that Private Companies own 15%, of the shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Tianjin LVYIN Landscape and Ecology Construction better, we need to consider many other factors. For example, we've discovered 2 warning signs for Tianjin LVYIN Landscape and Ecology Construction that you should be aware of before investing here.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.