Both retail investors who control a good portion of Hangzhou Tigermed Consulting Co., Ltd (SZSE:300347) along with institutions must be dismayed after last week's 4.2% decrease

Key Insights

• Hangzhou Tigermed Consulting's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 50% of the business is held by the top 17 shareholders
• Insider ownership in Hangzhou Tigermed Consulting is 28%

If you want to know who really controls Hangzhou Tigermed Consulting Co., Ltd (SZSE:300347), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 37% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While institutions who own 35% came under pressure after market cap dropped to CN¥50b last week,retail investors took the most losses.

Let's delve deeper into each type of owner of Hangzhou Tigermed Consulting, beginning with the chart below.

View our latest analysis for Hangzhou Tigermed Consulting

What Does The Institutional Ownership Tell Us About Hangzhou Tigermed Consulting?

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.

Hangzhou Tigermed Consulting already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Hangzhou Tigermed Consulting, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Hangzhou Tigermed Consulting. From our data, we infer that the largest shareholder is Xiaoping Ye (who also holds the title of Top Key Executive) with 21% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Meanwhile, the second and third largest shareholders, hold 6.0% and 3.4%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Xiaochun Cao is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 17 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Hangzhou Tigermed Consulting

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 most recent data indicates that insiders own a reasonable proportion of Hangzhou Tigermed Consulting Co., Ltd. Insiders own CN¥14b worth of shares in the CN¥50b 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, who are usually individual investors, hold a 37% stake in Hangzhou Tigermed Consulting. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hangzhou Tigermed Consulting better, we need to consider many other factors. For instance, we've identified 3 warning signs for Hangzhou Tigermed Consulting 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.