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 12% last week

Key Insights

• The considerable ownership by private companies in Shanghai DOBE Cultural & Creative Industry Development (Group)Co indicates that they collectively have a greater say in management and business strategy
• The top 5 shareholders own 51% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Shanghai DOBE Cultural & Creative Industry Development (Group)Co. LTD. (SZSE:300947) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 56% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, private companies benefitted the most after the company's market cap rose by CN¥315m last week.

Let's delve deeper into each type of owner of Shanghai DOBE Cultural & Creative Industry Development (Group)Co, beginning with the chart below.

View 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?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Shanghai DOBE Cultural & Creative Industry Development (Group)Co. 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.

Hedge funds don't have many shares in Shanghai DOBE Cultural & Creative Industry Development (Group)Co. Shanghai Zhongweizi Investment Management Co., Ltd. is currently the largest shareholder, with 34% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.7% and 5.2% of the stock.

On looking further, we found that 51% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 data suggests that insiders own under 1% of Shanghai DOBE Cultural & Creative Industry Development (Group)Co. LTD. in their own names. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It appears that the board holds about CN¥1.3m worth of stock. This compares to a market capitalization of CN¥3.0b. 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-- including retail investors -- own 35% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 56%, of the Shanghai DOBE Cultural & Creative Industry Development (Group)Co stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Shanghai DOBE Cultural & Creative Industry Development (Group)Co has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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.