Key Insights

• Zbom Home CollectionLtd's significant insider ownership suggests inherent interests in company's expansion
• 52% of the business is held by the top 5 shareholders
• Institutions own 23% of Zbom Home CollectionLtd

To get a sense of who is truly in control of Zbom Home Collection Co.,Ltd (SHSE:603801), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 8.4% decline in share price, insiders suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Zbom Home CollectionLtd.

View our latest analysis for Zbom Home CollectionLtd

What Does The Institutional Ownership Tell Us About Zbom Home CollectionLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Zbom Home CollectionLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Zbom Home CollectionLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Zbom Home CollectionLtd. The company's largest shareholder is Zhi Yong Sun, with ownership of 21%. Bang Shun Xu is the second largest shareholder owning 20% of common stock, and GF Fund Management Co., Ltd. holds about 4.5% of the company stock. Bang Shun Xu, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On looking further, we found that 52% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. 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 Zbom Home CollectionLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

It seems insiders own a significant proportion of Zbom Home Collection Co.,Ltd. It is very interesting to see that insiders have a meaningful CN¥3.6b stake in this CN¥7.3b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Zbom Home CollectionLtd. 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. Case in point: We've spotted 1 warning sign for Zbom Home CollectionLtd you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.