Retail investors who have a significant stake must be disappointed along with institutions after Guangzhou Kingmed Diagnostics Group Co., Ltd.'s (SHSE:603882) market cap dropped by CN¥502m

Key Insights

• Significant control over Guangzhou Kingmed Diagnostics Group by retail investors implies that the general public has more power to influence management and governance-related decisions
• 52% of the business is held by the top 10 shareholders
• Insider ownership in Guangzhou Kingmed Diagnostics Group is 18%

If you want to know who really controls Guangzhou Kingmed Diagnostics Group Co., Ltd. (SHSE:603882), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 31% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions who own 30% came under pressure after market cap dropped to CN¥11b last week,retail investors took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Guangzhou Kingmed Diagnostics Group.

Check out our latest analysis for Guangzhou Kingmed Diagnostics Group

What Does The Institutional Ownership Tell Us About Guangzhou Kingmed Diagnostics Group?

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.

As you can see, institutional investors have a fair amount of stake in Guangzhou Kingmed Diagnostics Group. 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. 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 Guangzhou Kingmed Diagnostics Group'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 Guangzhou Kingmed Diagnostics Group. Looking at our data, we can see that the largest shareholder is the CEO Yaoming Liang with 16% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.6% and 6.2%, of the shares outstanding, respectively.

On further inspection, we found that more than half the company's shares are owned by the top 10 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Guangzhou Kingmed Diagnostics Group

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. 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 most recent data indicates that insiders own a reasonable proportion of Guangzhou Kingmed Diagnostics Group Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥2.0b stake in this CN¥11b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Guangzhou Kingmed Diagnostics Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 6.6% stake in Guangzhou Kingmed Diagnostics Group. This suggests they can be influential in key policy decisions. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

It seems that Private Companies own 15%, of the Guangzhou Kingmed Diagnostics Group stock. 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:

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

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.