Key Insights

• The considerable ownership by retail investors in Qingdao Zhongzi Zhongcheng GroupLtd indicates that they collectively have a greater say in management and business strategy
• 52% of the business is held by the top 4 shareholders
• 26% of Qingdao Zhongzi Zhongcheng GroupLtd is held by insiders

Every investor in Qingdao Zhongzi Zhongcheng Group Co.,Ltd. (SZSE:300208) should be aware of the most powerful shareholder groups. With 42% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, retail investors were the biggest beneficiaries of last week's 17% gain.

Let's delve deeper into each type of owner of Qingdao Zhongzi Zhongcheng GroupLtd, beginning with the chart below.

What Does The Lack Of Institutional Ownership Tell Us About Qingdao Zhongzi Zhongcheng GroupLtd?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Qingdao Zhongzi Zhongcheng GroupLtd might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Hedge funds don't have many shares in Qingdao Zhongzi Zhongcheng GroupLtd. Looking at our data, we can see that the largest shareholder is Qingdao City Construction Investment (Group) Co.,Ltd with 22% of shares outstanding. In comparison, the second and third largest shareholders hold about 10% and 10% of the stock. Xiao Yu Jia, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Qingdao Zhongzi Zhongcheng 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 information suggests that insiders maintain a significant holding in Qingdao Zhongzi Zhongcheng Group Co.,Ltd.. It has a market capitalization of just CN¥3.8b, and insiders have CN¥994m 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, who are usually individual investors, hold a 42% stake in Qingdao Zhongzi Zhongcheng GroupLtd. 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

We can see that Private Companies own 31%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Qingdao Zhongzi Zhongcheng GroupLtd better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Qingdao Zhongzi Zhongcheng GroupLtd you should know about.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.