Following recent decline, Ronshine Service Holding Co., Ltd's (HKG:2207) top shareholder Top Key Executive Zonghong Ou sees holdings value drop by 13%

Key Insights

• Significant insider control over Ronshine Service Holding implies vested interests in company growth
• The largest shareholder of the company is Zonghong Ou with a 74% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Ronshine Service Holding Co., Ltd (HKG:2207) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 74% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by HK$234m.

Let's delve deeper into each type of owner of Ronshine Service Holding, beginning with the chart below.

View our latest analysis for Ronshine Service Holding

What Does The Lack Of Institutional Ownership Tell Us About Ronshine Service Holding?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Ronshine Service Holding's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Ronshine Service Holding is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Ronshine Service Holding's case, its Top Key Executive, Zonghong Ou, is the largest shareholder, holding 74% of shares outstanding.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Ronshine Service Holding

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 Ronshine Service Holding Co., Ltd. This means they can collectively make decisions for the company. So they have a HK$1.3b stake in this HK$1.7b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 26% stake in Ronshine Service Holding. 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 Ronshine Service Holding better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Ronshine Service Holding you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.