The recent 11% gain must have brightened CEO Guangyong Gao's week, SWS Hemodialysis Care Co., Ltd.'s (SHSE:688410) most bullish insider

Key Insights

• Insiders appear to have a vested interest in SWS Hemodialysis Care's growth, as seen by their sizeable ownership
• The top 3 shareholders own 61% of the company
• Institutional ownership in SWS Hemodialysis Care is 12%

If you want to know who really controls SWS Hemodialysis Care Co., Ltd. (SHSE:688410), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 49% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 11% gain.

Let's delve deeper into each type of owner of SWS Hemodialysis Care, beginning with the chart below.

View our latest analysis for SWS Hemodialysis Care

What Does The Institutional Ownership Tell Us About SWS Hemodialysis Care?

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 SWS Hemodialysis Care. 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. 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 SWS Hemodialysis Care, (below). Of course, keep in mind that there are other factors to consider, too.

SWS Hemodialysis Care is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Guangyong Gao with 36% of shares outstanding. Hunan Xiangjiang Liyuan Investment Management Co., Ltd. is the second largest shareholder owning 12% of common stock, and Yunjun Liu holds about 12% of the company stock. Interestingly, the third-largest shareholder, Yunjun Liu is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 3 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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of SWS Hemodialysis Care

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.

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 SWS Hemodialysis Care Co., Ltd.. Insiders own CN¥1.9b worth of shares in the CN¥3.9b company. 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

With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over SWS Hemodialysis Care. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

With a stake of 17%, private equity firms could influence the SWS Hemodialysis Care board. 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 8.5%, of the SWS Hemodialysis Care stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand SWS Hemodialysis Care better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for SWS Hemodialysis Care (of which 1 shouldn't be ignored!) you should know about.

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.

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

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