Beijing Chunlizhengda Medical Instruments Co., Ltd.'s (HKG:1858) largest shareholder, Head of Sales Chunbao Shi sees holdings value fall by 11% following recent drop

Key Insights

• Insiders appear to have a vested interest in Beijing Chunlizhengda Medical Instruments' growth, as seen by their sizeable ownership
• 55% of the business is held by the top 2 shareholders
• Institutions own 18% of Beijing Chunlizhengda Medical Instruments

A look at the shareholders of Beijing Chunlizhengda Medical Instruments Co., Ltd. (HKG:1858) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 59% ownership. 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, insiders as a group endured the highest losses after market cap fell by HK$529m.

Let's delve deeper into each type of owner of Beijing Chunlizhengda Medical Instruments, beginning with the chart below.

View our latest analysis for Beijing Chunlizhengda Medical Instruments

What Does The Institutional Ownership Tell Us About Beijing Chunlizhengda Medical Instruments?

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.

As you can see, institutional investors have a fair amount of stake in Beijing Chunlizhengda Medical Instruments. 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 Beijing Chunlizhengda Medical Instruments' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Beijing Chunlizhengda Medical Instruments. Our data suggests that Chunbao Shi, who is also the company's Head of Sales, holds the most number of shares at 30%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. With 25% and 4.5% of the shares outstanding respectively, Shujun Yue and Beijing Panmao Investment Management Co., Ltd. are the second and third largest shareholders. Interestingly, the second-largest shareholder, Shujun Yue is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Beijing Chunlizhengda Medical Instruments

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

It seems that insiders own more than half the Beijing Chunlizhengda Medical Instruments Co., Ltd. stock. This gives them a lot of power. Insiders own HK$5.2b worth of shares in the HK$8.9b 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 21% stake in Beijing Chunlizhengda Medical Instruments. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

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

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.