Zhejiang Cheng Yi Pharmaceutical Co., Ltd. (SHSE:603811) insiders, who hold 40% of the firm would be disappointed by the recent pullback

Key Insights

• Insiders appear to have a vested interest in Zhejiang Cheng Yi Pharmaceutical's growth, as seen by their sizeable ownership
• The top 15 shareholders own 51% of the company
• Institutional ownership in Zhejiang Cheng Yi Pharmaceutical is 19%

If you want to know who really controls Zhejiang Cheng Yi Pharmaceutical Co., Ltd. (SHSE:603811), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 40% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders as a group endured the highest losses after market cap fell by CN¥288m.

In the chart below, we zoom in on the different ownership groups of Zhejiang Cheng Yi Pharmaceutical.

View our latest analysis for Zhejiang Cheng Yi Pharmaceutical

What Does The Institutional Ownership Tell Us About Zhejiang Cheng Yi Pharmaceutical?

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.

As you can see, institutional investors have a fair amount of stake in Zhejiang Cheng Yi Pharmaceutical. 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 Cheng Yi Pharmaceutical's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Zhejiang Cheng Yi Pharmaceutical. The company's largest shareholder is Yi Yi Yan, with ownership of 24%. In comparison, the second and third largest shareholders hold about 4.7% and 2.6% of the stock.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 15 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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

Insider Ownership Of Zhejiang Cheng Yi Pharmaceutical

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. 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.

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.

It seems insiders own a significant proportion of Zhejiang Cheng Yi Pharmaceutical Co., Ltd.. Insiders have a CN¥885m stake in this CN¥2.2b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhejiang Cheng Yi Pharmaceutical. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Zhejiang Cheng Yi Pharmaceutical better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Zhejiang Cheng Yi Pharmaceutical you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.