CEO Xiaoyu Li, Qingdao Yunlu Advanced Materials Technology Co., Ltd.'s (SHSE:688190) largest shareholder sees value of holdings go down 4.8% after recent drop

Key Insights

• Qingdao Yunlu Advanced Materials Technology's significant insider ownership suggests inherent interests in company's expansion
• 67% of the business is held by the top 2 shareholders
• Institutional ownership in Qingdao Yunlu Advanced Materials Technology is 14%

A look at the shareholders of Qingdao Yunlu Advanced Materials Technology Co., Ltd. (SHSE:688190) can tell us which group is most powerful. The group holding the most number of shares in the company, around 38% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders as a group endured the highest losses after market cap fell by CN¥388m.

Let's delve deeper into each type of owner of Qingdao Yunlu Advanced Materials Technology, beginning with the chart below.

View our latest analysis for Qingdao Yunlu Advanced Materials Technology

What Does The Institutional Ownership Tell Us About Qingdao Yunlu Advanced Materials Technology?

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.

We can see that Qingdao Yunlu Advanced Materials Technology does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Qingdao Yunlu Advanced Materials Technology's earnings history below. Of course, the future is what really matters.

Qingdao Yunlu Advanced Materials Technology is not owned by hedge funds. The company's CEO Xiaoyu Li is the largest shareholder with 38% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 28% and 4.6%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Qingdao Yunlu Advanced Materials Technology

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. 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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Qingdao Yunlu Advanced Materials Technology Co., Ltd.. It has a market capitalization of just CN¥7.6b, and insiders have CN¥2.9b worth of shares in their own names. That's quite significant. 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

With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Qingdao Yunlu Advanced Materials Technology. 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

Our data indicates that Private Companies hold 32%, of the company's shares. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Qingdao Yunlu Advanced Materials Technology you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

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