Hebei Yangyuan ZhiHui Beverage Co., Ltd. (SHSE:603156) insiders, who hold 52% of the firm would be disappointed by the recent pullback

Key Insights

• Insiders appear to have a vested interest in Hebei Yangyuan ZhiHui Beverage's growth, as seen by their sizeable ownership
• A total of 4 investors have a majority stake in the company with 59% ownership
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Hebei Yangyuan ZhiHui Beverage Co., Ltd. (SHSE:603156) should be aware of the most powerful shareholder groups. With 52% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 3.0% decline in share price, insiders suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Hebei Yangyuan ZhiHui Beverage.

Check out our latest analysis for Hebei Yangyuan ZhiHui Beverage

What Does The Institutional Ownership Tell Us About Hebei Yangyuan ZhiHui Beverage?

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.

Less than 5% of Hebei Yangyuan ZhiHui Beverage is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Hebei Yangyuan ZhiHui Beverage. Kuizhang Yao is currently the largest shareholder, with 21% of shares outstanding. For context, the second largest shareholder holds about 18% of the shares outstanding, followed by an ownership of 9.9% by the third-largest shareholder. Hongbing Li, who is the third-largest shareholder, also happens to hold the title of Chairman of Corporate Board. Furthermore, CEO Zhaolin Fan is the owner of 9.9% of the company's shares.

Our research also brought to light the fact that roughly 59% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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 Hebei Yangyuan ZhiHui Beverage

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 information suggests that insiders own more than half of Hebei Yangyuan ZhiHui Beverage Co., Ltd.. This gives them effective control of the company. That means insiders have a very meaningful CN¥15b stake in this CN¥28b business. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 26% stake in Hebei Yangyuan ZhiHui Beverage. 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 18%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hebei Yangyuan ZhiHui Beverage better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Hebei Yangyuan ZhiHui Beverage (including 1 which shouldn't be ignored) .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.