Shenyang Xingqi Pharmaceutical Co.,Ltd.'s (SZSE:300573) stock price dropped 5.7% last week; individual investors would not be happy

Key Insights

• The considerable ownership by individual investors in Shenyang Xingqi PharmaceuticalLtd indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 24 shareholders
• 31% of Shenyang Xingqi PharmaceuticalLtd is held by insiders

Every investor in Shenyang Xingqi Pharmaceutical Co.,Ltd. (SZSE:300573) should be aware of the most powerful shareholder groups. With 48% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While the holdings of individual investors took a hit after last week’s 5.7% price drop, insiders with their 31% also suffered.

Let's delve deeper into each type of owner of Shenyang Xingqi PharmaceuticalLtd, beginning with the chart below.

View our latest analysis for Shenyang Xingqi PharmaceuticalLtd

What Does The Institutional Ownership Tell Us About Shenyang Xingqi PharmaceuticalLtd?

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.

Shenyang Xingqi PharmaceuticalLtd 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 Shenyang Xingqi PharmaceuticalLtd's earnings history below. Of course, the future is what really matters.

Shenyang Xingqi PharmaceuticalLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Jidong Liu with 28% of shares outstanding. With 4.6% and 2.9% of the shares outstanding respectively, National Council for Social Security Fund and Fullgoal Fund Management Co. Ltd. are the second and third largest shareholders. Furthermore, CEO E. Gao is the owner of 1.2% of the company's shares.

A closer look at our ownership figures suggests that the top 24 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Shenyang Xingqi PharmaceuticalLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our information suggests that insiders maintain a significant holding in Shenyang Xingqi Pharmaceutical Co.,Ltd.. It has a market capitalization of just CN¥15b, and insiders have CN¥4.7b 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

With a 48% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shenyang Xingqi PharmaceuticalLtd. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shenyang Xingqi PharmaceuticalLtd better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Shenyang Xingqi PharmaceuticalLtd .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.