Individual investors among Haoxiangni Health Food Co.,Ltd.'s (SZSE:002582) largest stockholders and were hit after last week's 11% price drop

Key Insights

• Significant control over Haoxiangni Health FoodLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 48% of the company
• Insiders own 34% of Haoxiangni Health FoodLtd

A look at the shareholders of Haoxiangni Health Food Co.,Ltd. (SZSE:002582) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders, who own 34% shares weren’t spared from last week’s CN¥490m market cap drop, individual investors as a group suffered the maximum losses

Let's delve deeper into each type of owner of Haoxiangni Health FoodLtd, beginning with the chart below.

See our latest analysis for Haoxiangni Health FoodLtd

What Does The Institutional Ownership Tell Us About Haoxiangni Health FoodLtd?

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.

Haoxiangni Health FoodLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Haoxiangni Health FoodLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Haoxiangni Health FoodLtd. The company's CEO Jubin Shi is the largest shareholder with 30% of shares outstanding. With 2.3% and 1.9% of the shares outstanding respectively, Hangzhou Haocheng Industrial Co., Ltd. and Juling Shi are the second and third largest shareholders. Interestingly, the third-largest shareholder, Juling Shi is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. 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 Haoxiangni Health FoodLtd

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. 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.

It seems insiders own a significant proportion of Haoxiangni Health Food Co.,Ltd.. Insiders have a CN¥1.3b stake in this CN¥4.0b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 51% stake in Haoxiangni Health FoodLtd, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Haoxiangni Health FoodLtd better, we need to consider many other factors. Be aware that Haoxiangni Health FoodLtd is showing 3 warning signs in our investment analysis , you should know about...

Of course this may not be the best stock to buy. So take a peek at this free 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.