Anhui Coreach Technology Co.,Ltd's (SZSE:002983) largest shareholder, CEO You Peng sees holdings value fall by 9.2% following recent drop

Key Insights

• Anhui Coreach TechnologyLtd's significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is You Peng with a 55% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Anhui Coreach Technology Co.,Ltd (SZSE:002983) should be aware of the most powerful shareholder groups. With 56% 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).

And following last week's 9.2% decline in share price, insiders suffered the most losses.

Let's delve deeper into each type of owner of Anhui Coreach TechnologyLtd, beginning with the chart below.

See our latest analysis for Anhui Coreach TechnologyLtd

What Does The Institutional Ownership Tell Us About Anhui Coreach TechnologyLtd?

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.

Anhui Coreach TechnologyLtd 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 Anhui Coreach TechnologyLtd's earnings history below. Of course, the future is what really matters.

Anhui Coreach TechnologyLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO You Peng with 55% of shares outstanding. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. With 14% and 1.1% of the shares outstanding respectively, Anhui Xinhui Information Technology Consulting Partnership Enterprise (Limited Partnership) and Hefei Xinzhi Information Consulting Partnership Enterprise (Limited Partnership) are the second and third largest shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Anhui Coreach TechnologyLtd

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 most recent data indicates that insiders own the majority of Anhui Coreach Technology Co.,Ltd. This means they can collectively make decisions for the company. That means they own CN¥2.1b worth of shares in the CN¥3.7b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 22% 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.

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 Anhui Coreach TechnologyLtd better, we need to consider many other factors. For example, we've discovered 2 warning signs for Anhui Coreach TechnologyLtd that you should be aware of before investing here.

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.