Yantai Dongcheng Pharmaceutical Group Co.,Ltd.'s (SZSE:002675) stock price dropped 5.0% last week; individual investors would not be happy

Key Insights

• The considerable ownership by individual investors in Yantai Dongcheng Pharmaceutical GroupLtd indicates that they collectively have a greater say in management and business strategy
• A total of 22 investors have a majority stake in the company with 50% ownership
• 13% of Yantai Dongcheng Pharmaceutical GroupLtd is held by insiders

A look at the shareholders of Yantai Dongcheng Pharmaceutical Group Co.,Ltd. (SZSE:002675) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 48% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, individual investors endured the biggest losses as the stock fell by 5.0%.

Let's take a closer look to see what the different types of shareholders can tell us about Yantai Dongcheng Pharmaceutical GroupLtd.

View our latest analysis for Yantai Dongcheng Pharmaceutical GroupLtd

What Does The Institutional Ownership Tell Us About Yantai Dongcheng Pharmaceutical GroupLtd?

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.

Yantai Dongcheng Pharmaceutical GroupLtd 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. 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 Yantai Dongcheng Pharmaceutical GroupLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Yantai Dongcheng Pharmaceutical GroupLtd. Yantai Dongyi Bioengineering Co., Ltd. is currently the largest shareholder, with 15% of shares outstanding. With 13% and 3.4% of the shares outstanding respectively, Shouyi You and Perseverance Asset Management L.L.P. are the second and third largest shareholders. In addition, we found that Zhi Gang Luo, the CEO has 0.6% of the shares allocated to their name.

After doing some more digging, we found that the top 22 have the combined ownership of 50% 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 Yantai Dongcheng Pharmaceutical GroupLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Yantai Dongcheng Pharmaceutical Group Co.,Ltd.. It has a market capitalization of just CN¥11b, and insiders have CN¥1.4b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 48% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 20%, of the Yantai Dongcheng Pharmaceutical GroupLtd stock. 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. For instance, we've identified 2 warning signs for Yantai Dongcheng Pharmaceutical GroupLtd (1 can't be ignored) that you should be aware of.

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.