Insiders own 29% of Suzhou Zelgen Biopharmaceuticals Co.,Ltd. (SHSE:688266) shares but retail investors control 31% of the company

Key Insights

• The considerable ownership by retail investors in Suzhou Zelgen BiopharmaceuticalsLtd indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 11 shareholders
• Insiders own 29% of Suzhou Zelgen BiopharmaceuticalsLtd

If you want to know who really controls Suzhou Zelgen Biopharmaceuticals Co.,Ltd. (SHSE:688266), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 31% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual insiders, on the other hand, account for 29% of the company's stockholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.

Let's delve deeper into each type of owner of Suzhou Zelgen BiopharmaceuticalsLtd, beginning with the chart below.

See our latest analysis for Suzhou Zelgen BiopharmaceuticalsLtd

What Does The Institutional Ownership Tell Us About Suzhou Zelgen BiopharmaceuticalsLtd?

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.

We can see that Suzhou Zelgen BiopharmaceuticalsLtd 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 Suzhou Zelgen BiopharmaceuticalsLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Suzhou Zelgen BiopharmaceuticalsLtd. With a 23% stake, CEO Zelin Sheng is the largest shareholder. In comparison, the second and third largest shareholders hold about 6.2% and 4.8% of the stock. Interestingly, the third-largest shareholder, Huiping Lu is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 11 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over 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 Suzhou Zelgen BiopharmaceuticalsLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

It seems insiders own a significant proportion of Suzhou Zelgen Biopharmaceuticals Co.,Ltd.. Insiders own CN¥4.3b worth of shares in the CN¥15b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. 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 15%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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