Anhui Deli Household Glass Co., Ltd.'s (SZSE:002571) market cap dropped CN¥227m last week; Individual investors bore the brunt

Key Insights

• The considerable ownership by individual investors in Anhui Deli Household Glass indicates that they collectively have a greater say in management and business strategy
• The top 4 shareholders own 50% of the company
• 32% of Anhui Deli Household Glass is held by insiders

A look at the shareholders of Anhui Deli Household Glass Co., Ltd. (SZSE:002571) can tell us which group is most powerful. The group holding the most number of shares in the company, around 45% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

While insiders who own 32% came under pressure after market cap dropped to CN¥1.9b last week,individual investors took the most losses.

Let's delve deeper into each type of owner of Anhui Deli Household Glass, beginning with the chart below.

Check out our latest analysis for Anhui Deli Household Glass

What Does The Institutional Ownership Tell Us About Anhui Deli Household Glass?

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.

We can see that Anhui Deli Household Glass does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Anhui Deli Household Glass, (below). Of course, keep in mind that there are other factors to consider, too.

Anhui Deli Household Glass is not owned by hedge funds. Weidong Shi is currently the company's largest shareholder with 32% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 5.0% of the stock.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 Anhui Deli Household Glass

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

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.

It seems insiders own a significant proportion of Anhui Deli Household Glass Co., Ltd.. Insiders own CN¥598m worth of shares in the CN¥1.9b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 45% stake in Anhui Deli Household Glass. 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

Our data indicates that Private Companies hold 16%, of the company's shares. 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 Deli Household Glass better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Anhui Deli Household Glass you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.