Yunnan Shennong Agricultural Industry Group Co.,LTD.'s (SHSE:605296) most bullish insider, CEO Zuxun He must be pleased with the recent 3.6% gain

Key Insights

• Insiders appear to have a vested interest in Yunnan Shennong Agricultural Industry GroupLTD's growth, as seen by their sizeable ownership
• 77% of the company is held by a single shareholder (Zuxun He)
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

If you want to know who really controls Yunnan Shennong Agricultural Industry Group Co.,LTD. (SHSE:605296), then you'll have to look at the makeup of its share registry. With 77% 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.

As a result, insiders scored the highest last week as the company hit CN¥15b market cap following a 3.6% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Yunnan Shennong Agricultural Industry GroupLTD.

Check out our latest analysis for Yunnan Shennong Agricultural Industry GroupLTD

What Does The Institutional Ownership Tell Us About Yunnan Shennong Agricultural Industry GroupLTD?

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.

Institutions have a very small stake in Yunnan Shennong Agricultural Industry GroupLTD. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

We note that hedge funds don't have a meaningful investment in Yunnan Shennong Agricultural Industry GroupLTD. Looking at our data, we can see that the largest shareholder is the CEO Zuxun He with 77% of shares outstanding. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. Yunnan Zhengdao Investment Development Partnership Enterprise (Limited Partnership) is the second largest shareholder owning 10% of common stock, and Shenzhen Lingxin Jishi Equity Investment Fund Management Partnership Enterprise (L.P.) holds about 1.2% of the company stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Yunnan Shennong Agricultural Industry GroupLTD

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 own more than half of Yunnan Shennong Agricultural Industry Group Co.,LTD.. This gives them effective control of the company. That means insiders have a very meaningful CN¥12b stake in this CN¥15b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 10% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Yunnan Shennong Agricultural Industry GroupLTD. 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

Our data indicates that Private Companies hold 10%, of the company's shares. 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. Be aware that Yunnan Shennong Agricultural Industry GroupLTD is showing 3 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.