After the recent decline, Beijing Yuanlong Yato Culture Dissemination Co.,Ltd. (SZSE:002878) CEO Zhen Sun's holdings have lost 9.6% of their value

Key Insights

• Beijing Yuanlong Yato Culture DisseminationLtd's significant insider ownership suggests inherent interests in company's expansion
• 51% of the business is held by the top 3 shareholders
• 12% of Beijing Yuanlong Yato Culture DisseminationLtd is held by Institutions

A look at the shareholders of Beijing Yuanlong Yato Culture Dissemination Co.,Ltd. (SZSE:002878) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to CN¥4.5b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about Beijing Yuanlong Yato Culture DisseminationLtd.

Check out our latest analysis for Beijing Yuanlong Yato Culture DisseminationLtd

What Does The Institutional Ownership Tell Us About Beijing Yuanlong Yato Culture DisseminationLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Beijing Yuanlong Yato Culture DisseminationLtd. 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 Beijing Yuanlong Yato Culture DisseminationLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Beijing Yuanlong Yato Culture DisseminationLtd. With a 47% stake, CEO Zhen Sun is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 1.8% and 1.7%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Beijing Yuanlong Yato Culture DisseminationLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Beijing Yuanlong Yato Culture Dissemination Co.,Ltd.. Insiders have a CN¥2.2b stake in this CN¥4.5b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 37% stake in Beijing Yuanlong Yato Culture DisseminationLtd. 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.

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 Beijing Yuanlong Yato Culture DisseminationLtd is showing 4 warning signs in our investment analysis , you should know about...

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.