Owning 55% in Flat Glass Group Co., Ltd. (HKG:6865) means that insiders are heavily invested in the company's future

Key Insights

• Flat Glass Group's significant insider ownership suggests inherent interests in company's expansion
• A total of 4 investors have a majority stake in the company with 51% ownership
• 26% 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 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So it follows, every decision made by insiders of Flat Glass Group regarding the company's future would be crucial to them.

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?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Flat Glass Group. 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 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. 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. Interestingly, the second and third-largest shareholders also happen to be the President and Vice Chairman, respectively. This once again signifies considerable insider ownership amongst the company's top shareholders.

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 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 Flat Glass Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 information suggests that insiders own more than half of Flat Glass Group Co., Ltd.. This gives them effective control of the company. That means insiders have a very meaningful HK$38b stake in this HK$69b business. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 19% stake in Flat Glass Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Flat Glass Group is showing 3 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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.