Beijing Chunlizhengda Medical Instruments Co., Ltd.'s (HKG:1858): Senior Key Executive Chunbao Shi is the most bullish insider, and their stock value gained 11% last week

Key Insights

• Insiders appear to have a vested interest in Beijing Chunlizhengda Medical Instruments' growth, as seen by their sizeable ownership
• A total of 2 investors have a majority stake in the company with 56% ownership
• Institutions own 18% of Beijing Chunlizhengda Medical Instruments

Our free stock report includes 1 warning sign investors should be aware of before investing in Beijing Chunlizhengda Medical Instruments. Read for free now.

To get a sense of who is truly in control of Beijing Chunlizhengda Medical Instruments Co., Ltd. (HKG:1858), it is important to understand the ownership structure of the business. With 57% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by HK$399m last week.

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

Check out 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 suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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.

We note that hedge funds don't have a meaningful investment in Beijing Chunlizhengda Medical Instruments. Our data suggests that Chunbao Shi, who is also the company's Senior Key Executive, holds the most number of shares at 31%. 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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

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. 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.

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 the majority of Beijing Chunlizhengda Medical Instruments Co., Ltd.. This means they can collectively make decisions for the company. So they have a HK$3.6b stake in this HK$6.3b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with Beijing Chunlizhengda Medical Instruments .

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.