Dian Diagnostics Group Co.,Ltd.'s (SZSE:300244) 8.4% gain last week benefited both retail investors who own 47% as well as insiders

Key Insights

• Significant control over Dian Diagnostics GroupLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 20 shareholders own 50% of the company
• Insiders own 29% of Dian Diagnostics GroupLtd

If you want to know who really controls Dian Diagnostics Group Co.,Ltd. (SZSE:300244), then you'll have to look at the makeup of its share registry. With 47% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 8.4% increase in the stock price last week, retail investors profited the most, but insiders who own 29% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Dian Diagnostics GroupLtd, beginning with the chart below.

See our latest analysis for Dian Diagnostics GroupLtd

What Does The Institutional Ownership Tell Us About Dian Diagnostics GroupLtd?

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.

Dian Diagnostics GroupLtd 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Dian Diagnostics GroupLtd's earnings history below. Of course, the future is what really matters.

Dian Diagnostics GroupLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Haibin Chen with 27% of shares outstanding. Hwabao WP Fund Management Co., Ltd is the second largest shareholder owning 2.8% of common stock, and UBS Asset Management AG holds about 2.0% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 20 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Dian Diagnostics GroupLtd

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 Dian Diagnostics Group Co.,Ltd.. It has a market capitalization of just CN¥6.9b, and insiders have CN¥2.0b worth of shares in their own names. 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-- including retail investors -- own 47% stake in the company, and hence can't easily be ignored. 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.

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 Dian Diagnostics GroupLtd is showing 1 warning sign in our investment analysis , 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.

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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.