Flat Glass Group Co., Ltd. (HKG:6865) CEO Hongliang Ruan's holdings dropped 20% in value as a result of the recent pullback

Key Insights

• Insiders appear to have a vested interest in Flat Glass Group's growth, as seen by their sizeable ownership
• The top 4 shareholders own 51% of the company
• 27% of Flat Glass Group is held by Institutions

To get a sense of who is truly in control of Flat Glass Group Co., Ltd. (HKG:6865), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, insiders endured the biggest losses as the stock fell by 20%.

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

View our latest analysis for Flat Glass Group

What Does The Institutional Ownership Tell Us About Flat Glass Group?

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 Flat Glass Group. 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 Flat Glass Group's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Flat Glass Group. The company's CEO Hongliang Ruan is the largest shareholder with 20% of shares outstanding. With 15% and 14% of the shares outstanding respectively, Zeyun Ruan and Jinhua Jiang are the second and third largest shareholders. Note that two of the top three shareholders are also President and Vice Chairman, respectively, once again pointing to significant ownership by company insiders.

After doing some more digging, we found that the top 4 shareholders control more than half of the company's shares which essentially means that there is concentrated ownership amongst the top shareholders, most of whom happen to be insiders!

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Flat Glass 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own the majority of Flat Glass Group Co., Ltd.. This means they can collectively make decisions for the company. That means insiders have a very meaningful HK$25b stake in this HK$45b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public-- including retail investors -- own 17% stake in the company, and hence can't easily be ignored. 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. Be aware that Flat Glass Group is showing 1 warning sign in our investment analysis , you should know about...

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.