Zhejiang Daily Digital Culture Group Co.,Ltd's (SHSE:600633) largest shareholders are private companies who were rewarded as market cap surged CN¥582m last week

Key Insights

• The considerable ownership by private companies in Zhejiang Daily Digital Culture GroupLtd indicates that they collectively have a greater say in management and business strategy
• A total of 3 investors have a majority stake in the company with 51% ownership
• Institutions own 12% of Zhejiang Daily Digital Culture GroupLtd

To get a sense of who is truly in control of Zhejiang Daily Digital Culture Group Co.,Ltd (SHSE:600633), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private companies with 49% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies collectively scored the highest last week as the company hit CN¥11b market cap following a 5.6% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Zhejiang Daily Digital Culture GroupLtd.

Check out our latest analysis for Zhejiang Daily Digital Culture GroupLtd

What Does The Institutional Ownership Tell Us About Zhejiang Daily Digital Culture 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.

We can see that Zhejiang Daily Digital Culture GroupLtd 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 Zhejiang Daily Digital Culture GroupLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Zhejiang Daily Digital Culture GroupLtd. Zhejiang Newspaper Media Holding Group Co.,Ltd. is currently the company's largest shareholder with 48% of shares outstanding. With 1.8% and 1.4% of the shares outstanding respectively, Guangdong Province Railway Development Fund Co., Ltd. and Shanghai Whitecat (Group) Co., Ltd. are the second and third largest shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Zhejiang Daily Digital Culture 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.

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.

Our data suggests that insiders own under 1% of Zhejiang Daily Digital Culture Group Co.,Ltd in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around CN¥1.7m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 38% stake in Zhejiang Daily Digital Culture GroupLtd. 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

We can see that Private Companies own 49%, of the shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Zhejiang Daily Digital Culture GroupLtd better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Zhejiang Daily Digital Culture GroupLtd .

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.

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