Hangzhou Yitong New Material Co., LTD (SZSE:300930) Top Key Executive Zhirong Wang's holdings dropped 21% in value as a result of the recent pullback

Key Insights

• Insiders appear to have a vested interest in Hangzhou Yitong New Material's growth, as seen by their sizeable ownership
• Zhirong Wang owns 57% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Hangzhou Yitong New Material Co., LTD (SZSE:300930) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 71% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, insiders endured the biggest losses as the stock fell by 21%.

Let's take a closer look to see what the different types of shareholders can tell us about Hangzhou Yitong New Material.

See our latest analysis for Hangzhou Yitong New Material

What Does The Institutional Ownership Tell Us About Hangzhou Yitong New Material?

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.

Since institutions own only a small portion of Hangzhou Yitong New Material, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Hangzhou Yitong New Material. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Hangzhou Yitong New Material's case, its Top Key Executive, Zhirong Wang, is the largest shareholder, holding 57% of shares outstanding. Zhichun Wang is the second largest shareholder owning 13% of common stock, and Hangzhou Cizheng Equity Investment Partnership Enterprise (Limited Partnership) holds about 4.5% of the company stock. Interestingly, the second-largest shareholder, Zhichun Wang is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Hangzhou Yitong New Material

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.

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 information suggests that insiders own more than half of Hangzhou Yitong New Material Co., LTD. This gives them effective control of the company. So they have a CN¥1.9b stake in this CN¥2.6b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 23% stake in Hangzhou Yitong New Material. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 4.5%, 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. Be aware that Hangzhou Yitong New Material is showing 4 warning signs in our investment analysis , and 2 of those are concerning...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.