Private companies among Emdoor Information CO.,LTD.'s (SZSE:001314) largest shareholders, saw gain in holdings value after stock jumped 11% last week

Key Insights

• The considerable ownership by private companies in Emdoor InformationLTD indicates that they collectively have a greater say in management and business strategy
• A total of 4 investors have a majority stake in the company with 52% ownership
• Insiders own 15% of Emdoor InformationLTD

To get a sense of who is truly in control of Emdoor Information CO.,LTD. (SZSE:001314), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 46% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private companies were the biggest beneficiaries of last week’s 11% gain.

Let's delve deeper into each type of owner of Emdoor InformationLTD, beginning with the chart below.

View our latest analysis for Emdoor InformationLTD

What Does The Institutional Ownership Tell Us About Emdoor InformationLTD?

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.

As you can see, institutional investors have a fair amount of stake in Emdoor InformationLTD. 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 Emdoor InformationLTD's earnings history below. Of course, the future is what really matters.

Emdoor InformationLTD is not owned by hedge funds. Shenzhen Emdoor Holdings Co., Ltd. is currently the company's largest shareholder with 41% of shares outstanding. Qing Shi is the second largest shareholder owning 3.6% of common stock, and Zhiyu Zhang holds about 3.4% of the company stock. Zhiyu Zhang, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. In addition, we found that Yuangui Liu, the CEO has 2.8% of the shares allocated to their name.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Emdoor InformationLTD

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 a reasonable proportion of Emdoor Information CO.,LTD.. Insiders own CN¥1.2b worth of shares in the CN¥8.0b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public-- including retail investors -- own 30% stake in the company, and hence can't easily be ignored. 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

It seems that Private Companies own 46%, of the Emdoor InformationLTD 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Emdoor InformationLTD better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Emdoor InformationLTD (of which 2 are a bit unpleasant!) you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.