Zhongliang Holdings Group Company Limited's (HKG:2772) Top Key Executive Jian Yang is the most upbeat insider, and their holdings increased by 215% last week

Key Insights

• Significant insider control over Zhongliang Holdings Group implies vested interests in company growth
• The largest shareholder of the company is Jian Yang with a 77% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Zhongliang Holdings Group Company Limited (HKG:2772) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 77% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 215% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Zhongliang Holdings Group.

View our latest analysis for Zhongliang Holdings Group

What Does The Lack Of Institutional Ownership Tell Us About Zhongliang Holdings Group?

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. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Zhongliang Holdings Group, for yourself, below.

Zhongliang Holdings Group is not owned by hedge funds. Our data suggests that Jian Yang, who is also the company's Top Key Executive, holds the most number of shares at 77%. 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. Meanwhile, the second and third largest shareholders, hold 0.4% and 0.009%, of the shares outstanding, respectively.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Zhongliang Holdings Group

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.

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 Zhongliang Holdings Group Company Limited. This means they can collectively make decisions for the company. That means they own HK$908m worth of shares in the HK$1.2b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 22% stake in Zhongliang Holdings Group. 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 Zhongliang Holdings Group better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Zhongliang Holdings Group you should be aware of, and 3 of them are a bit concerning.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.