Key Insights

• The considerable ownership by retail investors in Teyi Pharmaceutical GroupLtd indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 44% of the company
• Insider ownership in Teyi Pharmaceutical GroupLtd is 39%

If you want to know who really controls Teyi Pharmaceutical Group Co.,Ltd (SZSE:002728), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 54% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Retail investors gained the most after market cap touched CN¥6.0b last week, while insiders who own 39% also benefitted.

In the chart below, we zoom in on the different ownership groups of Teyi Pharmaceutical GroupLtd.

What Does The Institutional Ownership Tell Us About Teyi Pharmaceutical GroupLtd?

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 Teyi Pharmaceutical GroupLtd. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Teyi Pharmaceutical GroupLtd's earnings history below. Of course, the future is what really matters.

Teyi Pharmaceutical GroupLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Danqing Xu with 27% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.9% and 2.3%, of the shares outstanding, respectively. Songqing Xu, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Teyi Pharmaceutical GroupLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own a reasonable proportion of Teyi Pharmaceutical Group Co.,Ltd. Insiders have a CN¥2.3b stake in this CN¥6.0b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 54% of Teyi Pharmaceutical GroupLtd shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Teyi Pharmaceutical GroupLtd better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Teyi Pharmaceutical GroupLtd .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

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