Luyin Investment Group Co.,Ltd.'s (SHSE:600784) largest shareholders are individual investors who were rewarded as market cap surged CN¥338m last week

Key Insights

• The considerable ownership by individual investors in Luyin Investment GroupLtd indicates that they collectively have a greater say in management and business strategy
• A total of 17 investors have a majority stake in the company with 44% ownership
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Luyin Investment Group Co.,Ltd. (SHSE:600784), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, individual investors benefitted the most after the company's market cap rose by CN¥338m last week.

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

See our latest analysis for Luyin Investment GroupLtd

What Does The Institutional Ownership Tell Us About Luyin Investment GroupLtd?

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.

Luyin Investment 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. 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 Luyin Investment GroupLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Luyin Investment GroupLtd is not owned by hedge funds. Shandong Guohui Holding Group Investment Co.,Ltd. is currently the largest shareholder, with 32% of shares outstanding. The second and third largest shareholders are Shandong Guohui Fund Management Co., Ltd. and Shandong State-owned Assets Investment Holdings Co., Ltd., with an equal amount of shares to their name at 4.2%.

Our studies suggest that the top 17 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Luyin Investment 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. 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.

We can see that insiders own shares in Luyin Investment Group Co.,Ltd.. In their own names, insiders own CN¥91m worth of stock in the CN¥3.5b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of Luyin Investment GroupLtd shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

Our data indicates that Private Companies hold 36%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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 Luyin Investment GroupLtd is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.