Retail investors invested in Anhui Deli Household Glass Co., Ltd. (SZSE:002571) copped the brunt of last week's CN¥219m market cap decline

Key Insights

• The considerable ownership by retail investors in Anhui Deli Household Glass indicates that they collectively have a greater say in management and business strategy
• A total of 4 investors have a majority stake in the company with 51% ownership
• Insider ownership in Anhui Deli Household Glass is 32%

To get a sense of who is truly in control of Anhui Deli Household Glass Co., Ltd. (SZSE:002571), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 46% ownership. 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¥1.5b last week,retail investors took the most losses.

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

See our latest analysis for Anhui Deli Household Glass

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

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.

As you can see, institutional investors have a fair amount of stake in Anhui Deli Household Glass. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Anhui Deli Household Glass' historic earnings and revenue below, but keep in mind there's always more to the story.

Anhui Deli Household Glass is not owned by hedge funds. Weidong Shi is currently the company's largest shareholder with 32% of shares outstanding. With 11% and 5.0% of the shares outstanding respectively, Hangzhou Jinjiang Group and Xinyu Deshang Investment Management Co., Ltd. are the second and third largest shareholders.

On looking further, we found that 51% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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

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. 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.

Our information suggests that insiders maintain a significant holding in Anhui Deli Household Glass Co., Ltd.. Insiders own CN¥501m worth of shares in the CN¥1.5b company. 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-- including retail investors -- own 46% stake in the company, and hence can't easily be ignored. 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

It seems that Private Companies own 16%, of the Anhui Deli Household Glass stock. 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. To that end, you should be aware of the 2 warning signs we've spotted with Anhui Deli Household Glass .

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.