Liaoning Dingjide Petrochemical Co., Ltd.'s (SHSE:603255) most bullish insider is Top Key Executive Zaiming Zhang, and their holdings value went up by 9.8% last week

Key Insights

• Significant insider control over Liaoning Dingjide Petrochemical implies vested interests in company growth
• The largest shareholder of the company is Zaiming Zhang with a 53% stake
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Liaoning Dingjide Petrochemical Co., Ltd. (SHSE:603255), 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 72% to be precise, is individual insiders. 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¥369m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Liaoning Dingjide Petrochemical.

See our latest analysis for Liaoning Dingjide Petrochemical

What Does The Institutional Ownership Tell Us About Liaoning Dingjide Petrochemical?

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.

We can see that Liaoning Dingjide Petrochemical does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Liaoning Dingjide Petrochemical's earnings history below. Of course, the future is what really matters.

Liaoning Dingjide Petrochemical is not owned by hedge funds. From our data, we infer that the largest shareholder is Zaiming Zhang (who also holds the title of Top Key Executive) with 53% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. With 17% and 2.7% of the shares outstanding respectively, Weirong Xin and Hengqin Yongying Investment Management Co., Ltd. are the second and third largest shareholders. Interestingly, the second-largest shareholder, Weirong Xin is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Liaoning Dingjide Petrochemical

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems that insiders own more than half the Liaoning Dingjide Petrochemical Co., Ltd. stock. This gives them a lot of power. So they have a CN¥3.0b stake in this CN¥4.1b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 20% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Liaoning Dingjide Petrochemical is showing 3 warning signs in our investment analysis , and 2 of those are significant...

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.