Individual investors among Lanzhou Zhuangyuan Pasture Co., Ltd.'s (SZSE:002910) largest shareholders, saw gain in holdings value after stock jumped 11% last week

Key Insights

• Significant control over Lanzhou Zhuangyuan Pasture by individual investors implies that the general public has more power to influence management and governance-related decisions
• 54% of the business is held by the top 3 shareholders
• 17% of Lanzhou Zhuangyuan Pasture is held by insiders

A look at the shareholders of Lanzhou Zhuangyuan Pasture Co., Ltd. (SZSE:002910) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 43% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, individual investors benefitted the most after the company's market cap rose by CN¥159m last week.

In the chart below, we zoom in on the different ownership groups of Lanzhou Zhuangyuan Pasture.

See our latest analysis for Lanzhou Zhuangyuan Pasture

What Does The Institutional Ownership Tell Us About Lanzhou Zhuangyuan Pasture?

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.

Institutions have a very small stake in Lanzhou Zhuangyuan Pasture. 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. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Lanzhou Zhuangyuan Pasture is not owned by hedge funds. The company's largest shareholder is Gansu Provincial Land Reclamation Asset Management Limited, with ownership of 20%. In comparison, the second and third largest shareholders hold about 18% and 17% of the stock. Hongfu Ma, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Lanzhou Zhuangyuan Pasture

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 maintain a significant holding in Lanzhou Zhuangyuan Pasture Co., Ltd.. Insiders own CN¥261m worth of shares in the CN¥1.6b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 43% stake in Lanzhou Zhuangyuan Pasture. 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

Our data indicates that Private Companies hold 38%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 example, we've discovered 2 warning signs for Lanzhou Zhuangyuan Pasture that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.