Chaozhou Three-Circle (Group) Co.,Ltd. (SZSE:300408) stock most popular amongst retail investors who own 39%, while private companies hold 34%

Key Insights

• The considerable ownership by retail investors in Chaozhou Three-Circle (Group)Ltd indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 12 shareholders
• Institutional ownership in Chaozhou Three-Circle (Group)Ltd is 23%

Every investor in Chaozhou Three-Circle (Group) Co.,Ltd. (SZSE:300408) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 39% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, private companies make up 34% of the company’s shareholders.

Let's delve deeper into each type of owner of Chaozhou Three-Circle (Group)Ltd, beginning with the chart below.

View our latest analysis for Chaozhou Three-Circle (Group)Ltd

What Does The Institutional Ownership Tell Us About Chaozhou Three-Circle (Group)Ltd?

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 Chaozhou Three-Circle (Group)Ltd. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Chaozhou Three-Circle (Group)Ltd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Chaozhou Three-Circle (Group)Ltd. Looking at our data, we can see that the largest shareholder is Chaozhou Sanjiang Investment Co. Ltd. with 34% of shares outstanding. Wan Zhen Zhang is the second largest shareholder owning 2.8% of common stock, and E Fund Management Co., Ltd. holds about 2.7% of the company stock.

A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Chaozhou Three-Circle (Group)Ltd

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own some shares in Chaozhou Three-Circle (Group) Co.,Ltd.. Insiders own CN¥2.9b worth of shares (at current prices). Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 39% stake in Chaozhou Three-Circle (Group)Ltd. 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 34%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Chaozhou Three-Circle (Group)Ltd better, we need to consider many other factors. Be aware that Chaozhou Three-Circle (Group)Ltd is showing 1 warning sign in our investment analysis , you should know about...

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.