Hongliang Ruan Flat Glass Group Co., Ltd.'s (HKG:6865) CEO is the most bullish insider, and their stock value gained 4.3%last week

Key Insights

• Insiders appear to have a vested interest in Flat Glass Group's growth, as seen by their sizeable ownership
• A total of 6 investors have a majority stake in the company with 51% ownership
• 26% of Flat Glass Group is held by Institutions

If you want to know who really controls Flat Glass Group Co., Ltd. (HKG:6865), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 52% 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 scored the highest last week as the company hit HK$43b market cap following a 4.3% gain in the stock.

Let's delve deeper into each type of owner of Flat Glass Group, beginning with the chart below.

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.

Flat Glass Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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.

We note that hedge funds don't have a meaningful investment in Flat Glass Group. With a 17% stake, CEO Hongliang Ruan is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 15% and 14%, of the shares outstanding, respectively. Note that two of the top three shareholders are also President and Vice Chairman, respectively, once again pointing to significant ownership by company insiders.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 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 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.

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 information suggests that insiders own more than half of Flat Glass Group Co., Ltd.. This gives them effective control of the company. Given it has a market cap of HK$43b, that means insiders have a whopping HK$23b worth of shares in their own names. 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, who are usually individual investors, hold a 22% stake in Flat Glass 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Flat Glass Group has 3 warning signs (and 1 which can't be ignored) we think 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com