Easyhome New Retail Group Corporation Limited's (SZSE:000785) 11% loss last week hit both individual investors who own 51% as well as institutions

Key Insights

• Significant control over Easyhome New Retail Group by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 4 shareholders own 57% of the company
• 17% of Easyhome New Retail Group is held by Institutions

Every investor in Easyhome New Retail Group Corporation Limited (SZSE:000785) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions who own 17% came under pressure after market cap dropped to CN¥23b last week,private companies took the most losses.

Let's delve deeper into each type of owner of Easyhome New Retail Group, beginning with the chart below.

Check out our latest analysis for Easyhome New Retail Group

What Does The Institutional Ownership Tell Us About Easyhome New Retail Group?

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.

Easyhome New Retail Group 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 Easyhome New Retail Group's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Easyhome New Retail Group. Looking at our data, we can see that the largest shareholder is Beijing Zhongtian Jiye Investment Management Co., Ltd. with 26% of shares outstanding. With 11% and 10% of the shares outstanding respectively, Khorgos Huixinda Building Materials Co., Ltd. and BBMG Corporation are the second and third largest shareholders. Furthermore, CEO Linpeng Wang is the owner of 5.9% of the company's shares.

On looking further, we found that 57% of the shares are owned by the top 4 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. 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 Easyhome New Retail Group

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.

We can see that insiders own shares in Easyhome New Retail Group Corporation Limited. The insiders have a meaningful stake worth CN¥1.3b. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Easyhome New Retail Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 51%, 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.

Public Company Ownership

Public companies currently own 10% of Easyhome New Retail Group stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Easyhome New Retail Group better, we need to consider many other factors. For instance, we've identified 4 warning signs for Easyhome New Retail Group that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.