Every investor in Yuzhou Group Holdings Company Limited (HKG:1628) must know the most powerful shareholder groups. We can see that individual insiders hold the lion’s share of the company with 59% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
And last week, insiders suffered the biggest losses, as the stock fell 17%.
In the table below, we zoom in on the different ownership groups of Yuzhou Group Holdings.
Check out our latest analysis for Yuzhou Group Holdings
What does institutional ownership tell us about Yuzhou Group Holdings?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
As you can see, institutional investors hold a sizeable share of Yuzhou Group Holdings. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking the past earnings trajectory of Yuzhou Group Holdings (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds do not have many shares in Yuzhou Group Holdings. The company’s CEO, Lung Lam, is the largest shareholder with 30% of the outstanding shares. For context, the second largest shareholder owns approximately 29% of the outstanding shares, followed by 9.0% ownership by the third largest shareholder. Interestingly, the second largest shareholder, Ying Kwok, is also a Senior Key Executive, again, indicating strong insider ownership among the company’s major shareholders.
After digging a little deeper, we found that the 2 major shareholders collectively control more than half of the company’s shares, implying that they have considerable power to influence company decisions.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are a reasonable number of analysts covering the stock, so it can be useful to know their overall view on the future.
Insider ownership of Yuzhou Group Holdings
The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own the majority of Yuzhou Group Holdings Company Limited. This means they can collectively make decisions for the business. That means they own HK$2.1 billion worth of shares in the HK$3.5 billion company. It is quite significant. Most would be delighted to see the board investing alongside them. You might want to find out (free) whether they bought or sold.
General public property
The general public, including retail investors, owns 27% of the company’s capital and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.
Ownership of a public company
State-owned enterprises currently hold 9.0% of shares in Yuzhou Group Holdings. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.
I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. To do this, you need to find out about the 3 warning signs we spotted with Yuzhou Group Holdings (including 1 that can’t be ignored).
If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.