With 64% ownership, Yadea Group Holdings Ltd. (HKG:1585) insiders have a lot riding on the company's future

Key Insights

• Significant insider control over Yadea Group Holdings implies vested interests in company growth
• The top 2 shareholders own 64% of the company
• 18% of Yadea Group Holdings is held by Institutions

A look at the shareholders of Yadea Group Holdings Ltd. (HKG:1585) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 64% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

So, insiders of Yadea Group Holdings have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

Let's delve deeper into each type of owner of Yadea Group Holdings, beginning with the chart below.

View our latest analysis for Yadea Group Holdings

What Does The Institutional Ownership Tell Us About Yadea Group Holdings?

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.

We can see that Yadea Group Holdings does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Yadea Group Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Yadea Group Holdings. From our data, we infer that the largest shareholder is Jinggui Dong (who also holds the title of Top Key Executive) with 47% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Jinghong Qian is the second largest shareholder owning 17% of common stock, and Invesco Great Wall Fund Management Co. Ltd holds about 1.8% of the company stock. Interestingly, the second-largest shareholder, Jinghong Qian is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 64% stake.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Yadea Group Holdings

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.

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 most recent data indicates that insiders own the majority of Yadea Group Holdings Ltd.. This means they can collectively make decisions for the company. Insiders own HK$19b worth of shares in the HK$30b company. That's extraordinary! Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 18% stake in Yadea Group Holdings. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Yadea Group Holdings better, we need to consider many other factors. For example, we've discovered 1 warning sign for Yadea Group Holdings that you should be aware of before investing here.

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.