The recent 14% gain must have brightened CEO Yuanchao Xue's week, Hangzhou Tianyuan Pet Products CO., LTD's (SZSE:301335) most bullish insider

Key Insights

• Hangzhou Tianyuan Pet Products' significant insider ownership suggests inherent interests in company's expansion
• The top 4 shareholders own 56% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Hangzhou Tianyuan Pet Products CO., LTD (SZSE:301335) can tell us which group is most powerful. With 43% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥350m last week.

Let's delve deeper into each type of owner of Hangzhou Tianyuan Pet Products, beginning with the chart below.

View our latest analysis for Hangzhou Tianyuan Pet Products

What Does The Institutional Ownership Tell Us About Hangzhou Tianyuan Pet Products?

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.

As you can see, institutional investors have a fair amount of stake in Hangzhou Tianyuan Pet Products. 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. 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 Hangzhou Tianyuan Pet Products, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Hangzhou Tianyuan Pet Products. Looking at our data, we can see that the largest shareholder is the CEO Yuanchao Xue with 25% of shares outstanding. Lingbing Jiang is the second largest shareholder owning 12% of common stock, and Hangzhou Tongwang Investment Co., Ltd. holds about 11% of the company stock. Interestingly, the second-largest shareholder, Lingbing Jiang is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

Our research also brought to light the fact that roughly 56% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Hangzhou Tianyuan Pet Products

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 Hangzhou Tianyuan Pet Products CO., LTD. Insiders have a CN¥1.2b stake in this CN¥2.9b business. 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 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hangzhou Tianyuan Pet Products. 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 Company Ownership

It seems that Private Companies own 21%, of the Hangzhou Tianyuan Pet Products 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 Hangzhou Tianyuan Pet Products better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with Hangzhou Tianyuan Pet Products .

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.