Key Insights

• The considerable ownership by individual investors in Doctorglasses ChainLtd indicates that they collectively have a greater say in management and business strategy
• The top 7 shareholders own 50% of the company
• Insider ownership in Doctorglasses ChainLtd is 44%

To get a sense of who is truly in control of Doctorglasses Chain Co.,Ltd. (SZSE:300622), it is important to understand the ownership structure of the business. With 48% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that reaped the most benefits after last week's 14% price gain, insiders also received a 44% cut.

Let's delve deeper into each type of owner of Doctorglasses ChainLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Doctorglasses ChainLtd?

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 Doctorglasses ChainLtd 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 Doctorglasses ChainLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Doctorglasses ChainLtd. Looking at our data, we can see that the largest shareholder is the CEO Louisa Fan with 22% of shares outstanding. Alexander Liu is the second largest shareholder owning 20% of common stock, and Feixiang (Hangzhou) Asset Management Co., Ltd. holds about 5.0% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Doctorglasses ChainLtd

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.

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 Doctorglasses Chain Co.,Ltd.. It has a market capitalization of just CN¥8.9b, and insiders have CN¥4.0b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 48% stake in Doctorglasses ChainLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Doctorglasses ChainLtd better, we need to consider many other factors. For example, we've discovered 3 warning signs for Doctorglasses ChainLtd (1 doesn't sit too well with us!) that you should be aware of before investing here.

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.