Key Insights

• The considerable ownership by private companies in Qinghai Huzhu TianYouDe Highland Barley Spirit indicates that they collectively have a greater say in management and business strategy
• The top 6 shareholders own 51% of the company
• Institutional ownership in Qinghai Huzhu TianYouDe Highland Barley Spirit is 12%

A look at the shareholders of Qinghai Huzhu TianYouDe Highland Barley Spirit Co., Ltd. (SZSE:002646) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 44% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, private companies endured the biggest losses as the stock fell by 17%.

Let's delve deeper into each type of owner of Qinghai Huzhu TianYouDe Highland Barley Spirit, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Qinghai Huzhu TianYouDe Highland Barley Spirit?

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 Qinghai Huzhu TianYouDe Highland Barley Spirit. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Qinghai Huzhu TianYouDe Highland Barley Spirit's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Qinghai Huzhu TianYouDe Highland Barley Spirit. Our data shows that Qinghai Huashi Technology Investment Management Co., Ltd is the largest shareholder with 41% of shares outstanding. For context, the second largest shareholder holds about 3.7% of the shares outstanding, followed by an ownership of 2.8% by the third-largest shareholder.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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

Insider Ownership Of Qinghai Huzhu TianYouDe Highland Barley Spirit

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 information suggests that Qinghai Huzhu TianYouDe Highland Barley Spirit Co., Ltd. insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It appears that the board holds about CN¥691k worth of stock. This compares to a market capitalization of CN¥5.0b. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 44% stake in the company, and hence can't easily be ignored. 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.

Private Company Ownership

It seems that Private Companies own 44%, of the Qinghai Huzhu TianYouDe Highland Barley Spirit stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Qinghai Huzhu TianYouDe Highland Barley Spirit , and understanding them should be part of your investment process.

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.