Public companies are DouYu International Holdings Limited's (NASDAQ:DOYU) biggest owners and were hit after market cap dropped US$25m

Key Insights

• Significant control over DouYu International Holdings by public companies implies that the general public has more power to influence management and governance-related decisions
• 58% of the business is held by the top 2 shareholders
• 18% of DouYu International Holdings is held by insiders

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A look at the shareholders of DouYu International Holdings Limited (NASDAQ:DOYU) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 40% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 11% decline in share price, public companies suffered the most losses.

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

Check out our latest analysis for DouYu International Holdings

What Does The Institutional Ownership Tell Us About DouYu International Holdings?

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.

We can see that DouYu International Holdings does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of DouYu International Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in DouYu International Holdings. Looking at our data, we can see that the largest shareholder is Tencent Holdings Limited with 40% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 18% and 6.1%, of the shares outstanding, respectively. Shaojie Chen, who is the second-largest shareholder, also happens to hold the title of Co-Chief Executive Officer.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 58% stake.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of DouYu International Holdings

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.

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 maintain a significant holding in DouYu International Holdings Limited. Insiders own US$37m worth of shares in the US$204m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 21% 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.

Public Company Ownership

Public companies currently own 40% of DouYu International Holdings stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand DouYu International Holdings better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with DouYu International Holdings .

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.