Zhejiang Meorient Commerce Exhibition Inc. (SZSE:300795) CEO Huansheng Fang's holdings dropped 10% in value as a result of the recent pullback

Key Insights

• Zhejiang Meorient Commerce Exhibition's significant insider ownership suggests inherent interests in company's expansion
• A total of 3 investors have a majority stake in the company with 55% ownership
• Institutions own 14% of Zhejiang Meorient Commerce Exhibition

A look at the shareholders of Zhejiang Meorient Commerce Exhibition Inc. (SZSE:300795) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 62% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 10% decline in share price, insiders suffered the most losses.

Let's delve deeper into each type of owner of Zhejiang Meorient Commerce Exhibition, beginning with the chart below.

View our latest analysis for Zhejiang Meorient Commerce Exhibition

What Does The Institutional Ownership Tell Us About Zhejiang Meorient Commerce Exhibition?

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 Zhejiang Meorient Commerce Exhibition. 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. 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 Zhejiang Meorient Commerce Exhibition, (below). Of course, keep in mind that there are other factors to consider, too.

Zhejiang Meorient Commerce Exhibition is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Huansheng Fang with 23% of shares outstanding. For context, the second largest shareholder holds about 23% of the shares outstanding, followed by an ownership of 9.3% by the third-largest shareholder. Interestingly, the third-largest shareholder, Zongxian Yao is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top 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.

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

Insider Ownership Of Zhejiang Meorient Commerce Exhibition

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 the majority of Zhejiang Meorient Commerce Exhibition Inc.. This means they can collectively make decisions for the company. That means they own CN¥2.6b worth of shares in the CN¥4.2b company. That's quite meaningful. 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

With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhejiang Meorient Commerce Exhibition. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Zhejiang Meorient Commerce Exhibition better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Zhejiang Meorient Commerce Exhibition you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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