CEO Xuewu Zhang, YanKer shop Food Co.,Ltd's (SZSE:002847) largest shareholder sees value of holdings go down 6.0% after recent drop

Key Insights

• Significant insider control over YanKer shop FoodLtd implies vested interests in company growth
• 64% of the business is held by the top 2 shareholders
• Institutional ownership in YanKer shop FoodLtd is 17%

A look at the shareholders of YanKer shop Food Co.,Ltd (SZSE:002847) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 67% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders as a group endured the highest losses after market cap fell by CN¥640m.

Let's take a closer look to see what the different types of shareholders can tell us about YanKer shop FoodLtd.

See our latest analysis for YanKer shop FoodLtd

What Does The Institutional Ownership Tell Us About YanKer shop FoodLtd?

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.

YanKer shop FoodLtd 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see YanKer shop FoodLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in YanKer shop FoodLtd. The company's CEO Xuewu Zhang is the largest shareholder with 48% of shares outstanding. With 16% and 2.5% of the shares outstanding respectively, Xuewen Zhang and National Council for Social Security Fund are the second and third largest shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 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 YanKer shop FoodLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 information suggests that insiders own more than half of YanKer shop Food Co.,Ltd. This gives them effective control of the company. Given it has a market cap of CN¥10b, that means insiders have a whopping CN¥6.7b worth of shares in their own names. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over YanKer shop FoodLtd. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that YanKer shop FoodLtd is showing 1 warning sign in our investment analysis , you should know about...

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com