Key Insights

• Changzhou Qianhong BiopharmaLTD's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 19 investors have a majority stake in the company with 50% ownership
• 43% of Changzhou Qianhong BiopharmaLTD is held by insiders

A look at the shareholders of Changzhou Qianhong Biopharma CO.,LTD (SZSE:002550) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 49% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While retail investors were the group that benefitted the most from last week's CN¥387m market cap gain, insiders too had a 43% share in those profits.

Let's delve deeper into each type of owner of Changzhou Qianhong BiopharmaLTD, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Changzhou Qianhong BiopharmaLTD?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Changzhou Qianhong BiopharmaLTD already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Changzhou Qianhong BiopharmaLTD'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 Changzhou Qianhong BiopharmaLTD. Looking at our data, we can see that the largest shareholder is Yaofang Wang with 20% of shares outstanding. With 7.9% and 5.1% of the shares outstanding respectively, Gang Zhao and Ke Wang are the second and third largest shareholders. Ke Wang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 19 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 Changzhou Qianhong BiopharmaLTD

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 Changzhou Qianhong Biopharma CO.,LTD. It has a market capitalization of just CN¥6.6b, and insiders have CN¥2.8b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 49% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Changzhou Qianhong BiopharmaLTD better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Changzhou Qianhong BiopharmaLTD .

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.