BIEM.L.FDLKK Garment Co.,Ltd. (SZSE:002832) Top Key Executive Bingzheng Xie's holdings dropped 4.2% in value as a result of the recent pullback

Key Insights

• Significant insider control over BIEM.L.FDLKK GarmentLtd implies vested interests in company growth
• 52% of the business is held by the top 3 shareholders
• Institutions own 24% of BIEM.L.FDLKK GarmentLtd

To get a sense of who is truly in control of BIEM.L.FDLKK Garment Co.,Ltd. (SZSE:002832), it is important to understand the ownership structure of the business. With 46% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, insiders endured the biggest losses as the stock fell by 4.2%.

Let's take a closer look to see what the different types of shareholders can tell us about BIEM.L.FDLKK GarmentLtd.

See our latest analysis for BIEM.L.FDLKK GarmentLtd

What Does The Institutional Ownership Tell Us About BIEM.L.FDLKK GarmentLtd?

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.

BIEM.L.FDLKK GarmentLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 BIEM.L.FDLKK GarmentLtd's earnings history below. Of course, the future is what really matters.

BIEM.L.FDLKK GarmentLtd is not owned by hedge funds. Our data suggests that Bingzheng Xie, who is also the company's Top Key Executive, holds the most number of shares at 41%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. For context, the second largest shareholder holds about 6.9% of the shares outstanding, followed by an ownership of 3.7% by the third-largest shareholder.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of BIEM.L.FDLKK GarmentLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of BIEM.L.FDLKK Garment Co.,Ltd.. It has a market capitalization of just CN¥11b, and insiders have CN¥5.2b worth of shares in their own names. That's quite significant. 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, who are usually individual investors, hold a 22% stake in BIEM.L.FDLKK GarmentLtd. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand BIEM.L.FDLKK GarmentLtd better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for BIEM.L.FDLKK GarmentLtd you should be aware of, and 1 of them can't be ignored.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.