Rongfeng Holding Group Co.,Ltd.'s (SZSE:000668) largest shareholders are retail investors who were rewarded as market cap surged CN¥98m last week

Key Insights

• The considerable ownership by retail investors in Rongfeng Holding GroupLtd indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 10 shareholders
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Rongfeng Holding Group Co.,Ltd. (SZSE:000668) should be aware of the most powerful shareholder groups. With 49% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors were the biggest beneficiaries of last week’s 12% gain.

In the chart below, we zoom in on the different ownership groups of Rongfeng Holding GroupLtd.

View our latest analysis for Rongfeng Holding GroupLtd

What Does The Institutional Ownership Tell Us About Rongfeng Holding 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.

Rongfeng Holding GroupLtd 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. 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 Rongfeng Holding GroupLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Rongfeng Holding GroupLtd. The company's largest shareholder is Shengshida Investment Co., with ownership of 41%. Morgan Stanley, Investment Banking and Brokerage Investments is the second largest shareholder owning 2.0% of common stock, and Beijing Jinsui Yuheng Investment Co., Ltd. holds about 1.3% of the company stock.

We also observed that the top 10 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Rongfeng Holding 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.

We can report that insiders do own shares in Rongfeng Holding Group Co.,Ltd.. As individuals, the insiders collectively own CN¥16m worth of the CN¥938m company. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 49% stake in Rongfeng Holding GroupLtd. 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

It seems that Private Companies own 43%, of the Rongfeng Holding GroupLtd stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Rongfeng Holding GroupLtd better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Rongfeng Holding GroupLtd (including 1 which doesn't sit too well with us) .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.