Retail investors account for 51% of Shanghai Fosun Pharmaceutical (Group) Co., Ltd.'s (SHSE:600196) ownership, while private companies account for 37%

Key Insights

• The considerable ownership by retail investors in Shanghai Fosun Pharmaceutical (Group) indicates that they collectively have a greater say in management and business strategy
• 47% of the business is held by the top 25 shareholders
• 12% of Shanghai Fosun Pharmaceutical (Group) is held by Institutions

A look at the shareholders of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (SHSE:600196) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, private companies make up 37% of the company’s shareholders.

Let's delve deeper into each type of owner of Shanghai Fosun Pharmaceutical (Group), beginning with the chart below.

Check out our latest analysis for Shanghai Fosun Pharmaceutical (Group)

What Does The Institutional Ownership Tell Us About Shanghai Fosun Pharmaceutical (Group)?

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.

Shanghai Fosun Pharmaceutical (Group) already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Shanghai Fosun Pharmaceutical (Group)'s earnings history below. Of course, the future is what really matters.

Shanghai Fosun Pharmaceutical (Group) is not owned by hedge funds. Our data shows that Fosun International Holdings Ltd. is the largest shareholder with 36% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 1.5% and 1.1%, of the shares outstanding, respectively.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Shanghai Fosun Pharmaceutical (Group)

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 information suggests that Shanghai Fosun Pharmaceutical (Group) Co., Ltd. insiders own under 1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CN¥76m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 51% stake in Shanghai Fosun Pharmaceutical (Group), suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

It seems that Private Companies own 37%, of the Shanghai Fosun Pharmaceutical (Group) stock. 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 Shanghai Fosun Pharmaceutical (Group) better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Shanghai Fosun Pharmaceutical (Group) 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.