Institutions profited after Zhejiang Cayi Vacuum Container Co., Ltd.'s (SZSE:301004) market cap rose CN¥370m last week but private companies profited the most

Key Insights

• Zhejiang Cayi Vacuum Container's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 56% of the business is held by the top 2 shareholders
• Insiders own 17% of Zhejiang Cayi Vacuum Container

To get a sense of who is truly in control of Zhejiang Cayi Vacuum Container Co., Ltd. (SZSE:301004), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 56% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 4.5% increase in the stock price last week, private companies profited the most, but institutions who own 17% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Zhejiang Cayi Vacuum Container, beginning with the chart below.

See our latest analysis for Zhejiang Cayi Vacuum Container

What Does The Institutional Ownership Tell Us About Zhejiang Cayi Vacuum Container?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Zhejiang Cayi Vacuum Container does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Zhejiang Cayi Vacuum Container, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Zhejiang Cayi Vacuum Container. Zhejiang Jiashao Yunhua Investment Management Co., Ltd. is currently the company's largest shareholder with 47% of shares outstanding. Wuyi Jiajin Investment Management Partnership Enterprise (L.P.) is the second largest shareholder owning 9.0% of common stock, and Xinghua Qi holds about 8.2% of the company stock. Xinghua Qi, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 56% stake.

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. 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 Zhejiang Cayi Vacuum Container

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.

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 Zhejiang Cayi Vacuum Container Co., Ltd.. It has a market capitalization of just CN¥8.6b, and insiders have CN¥1.4b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. 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 10% stake in Zhejiang Cayi Vacuum Container. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 56%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for Zhejiang Cayi Vacuum Container that you should be aware of.

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.