Private companies in Shanghai DOBE Cultural & Creative Industry Development (Group)Co. LTD. (SZSE:300947) are its biggest bettors, and their bets paid off as stock gained 25% last week

Key Insights

• Significant control over Shanghai DOBE Cultural & Creative Industry Development (Group)Co by private companies implies that the general public has more power to influence management and governance-related decisions
• A total of 5 investors have a majority stake in the company with 52% ownership
• 12% of Shanghai DOBE Cultural & Creative Industry Development (Group)Co is held by Institutions

If you want to know who really controls Shanghai DOBE Cultural & Creative Industry Development (Group)Co. LTD. (SZSE:300947), then you'll have to look at the makeup of its share registry. With 56% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies were the biggest beneficiaries of last week’s 25% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai DOBE Cultural & Creative Industry Development (Group)Co.

Check out our latest analysis for Shanghai DOBE Cultural & Creative Industry Development (Group)Co

What Does The Institutional Ownership Tell Us About Shanghai DOBE Cultural & Creative Industry Development (Group)Co?

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.

Shanghai DOBE Cultural & Creative Industry Development (Group)Co already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Shanghai DOBE Cultural & Creative Industry Development (Group)Co, (below). Of course, keep in mind that there are other factors to consider, too.

Shanghai DOBE Cultural & Creative Industry Development (Group)Co is not owned by hedge funds. Shanghai Zhongweizi Investment Management Co., Ltd. is currently the company's largest shareholder with 34% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.6% and 5.5%, of the shares outstanding, respectively.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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 Shanghai DOBE Cultural & Creative Industry Development (Group)Co

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

Our most recent data indicates that insiders own less than 1% of Shanghai DOBE Cultural & Creative Industry Development (Group)Co. LTD.. But they may have an indirect interest through a corporate structure that we haven't picked up on. It seems the board members have no more than CN¥1.1m worth of shares in the CN¥2.5b company. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in Shanghai DOBE Cultural & Creative Industry Development (Group)Co. 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

Our data indicates that Private Companies hold 56%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the 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. Be aware that Shanghai DOBE Cultural & Creative Industry Development (Group)Co is showing 3 warning signs in our investment analysis , and 2 of those are significant...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com