China Chunlai Education Group Co., Ltd.'s (HKG:1969) most bullish insider is Senior Key Executive Junyu Hou, and their holdings value went up by 6.1% last week

Key Insights

• Insiders appear to have a vested interest in China Chunlai Education Group's growth, as seen by their sizeable ownership
• The largest shareholder of the company is Junyu Hou with a 75% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in China Chunlai Education Group Co., Ltd. (HKG:1969) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 75% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by HK$528m last week.

Let's delve deeper into each type of owner of China Chunlai Education Group, beginning with the chart below.

Check out our latest analysis for China Chunlai Education Group

What Does The Lack Of Institutional Ownership Tell Us About China Chunlai Education Group?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. China Chunlai Education Group might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

We note that hedge funds don't have a meaningful investment in China Chunlai Education Group. From our data, we infer that the largest shareholder is Junyu Hou (who also holds the title of Senior Key Executive) with 75% 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. Xiang Rong International Limited is the second largest shareholder owning 5.5% of common stock, and State Street Global Advisors, Inc. holds about 0.04% of the company stock.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of China Chunlai Education Group

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.

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 the majority of China Chunlai Education Group Co., Ltd.. This means they can collectively make decisions for the company. Given it has a market cap of HK$8.9b, that means insiders have a whopping HK$6.7b worth of shares in their own names. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

With a 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over China Chunlai Education Group. 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

Our data indicates that Private Companies hold 5.5%, of the company's shares. 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. Case in point: We've spotted 1 warning sign for China Chunlai Education Group you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.