Institutional shareholders may be less affected by Hangzhou Binjiang Real Estate Group Co.,Ltd's (SZSE:002244) pullback last week after a year of 8.6% returns

Key Insights

• Given the large stake in the stock by institutions, Hangzhou Binjiang Real Estate GroupLtd's stock price might be vulnerable to their trading decisions
• 57% of the business is held by the top 2 shareholders
• Insider ownership in Hangzhou Binjiang Real Estate GroupLtd is 19%

If you want to know who really controls Hangzhou Binjiang Real Estate Group Co.,Ltd (SZSE:002244), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 63% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutional investors endured the highest losses after the company's market cap fell by CN¥3.4b last week. However, the 8.6% one-year returns may have helped alleviate their overall losses. We would assume however, that they would be on the lookout for weakness in the future.

Let's delve deeper into each type of owner of Hangzhou Binjiang Real Estate GroupLtd, beginning with the chart below.

View our latest analysis for Hangzhou Binjiang Real Estate GroupLtd

What Does The Institutional Ownership Tell Us About Hangzhou Binjiang Real Estate GroupLtd?

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.

As you can see, institutional investors have a fair amount of stake in Hangzhou Binjiang Real Estate GroupLtd. 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 Hangzhou Binjiang Real Estate GroupLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hangzhou Binjiang Real Estate GroupLtd is not owned by hedge funds. The company's largest shareholder is Hangzhou Binjiang Investment Holding Ltd., with ownership of 45%. Meanwhile, the second and third largest shareholders, hold 12% and 3.2%, of the shares outstanding, respectively. Jianhua Mo, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. Furthermore, CEO Huiming Zhu is the owner of 3.2% of the company's shares.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Hangzhou Binjiang Real Estate GroupLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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.

It seems insiders own a significant proportion of Hangzhou Binjiang Real Estate Group Co.,Ltd. Insiders own CN¥5.4b worth of shares in the CN¥28b company. That's quite meaningful. 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 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hangzhou Binjiang Real Estate 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hangzhou Binjiang Real Estate GroupLtd better, we need to consider many other factors. Take risks for example - Hangzhou Binjiang Real Estate GroupLtd has 4 warning signs we think 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.