Key Insights

• Significant control over Yantai Dongcheng Pharmaceutical GroupLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 23 investors have a majority stake in the company with 50% ownership
• Insiders own 13% of Yantai Dongcheng Pharmaceutical GroupLtd

A look at the shareholders of Yantai Dongcheng Pharmaceutical Group Co.,Ltd. (SZSE:002675) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 48% 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, individual investors endured the biggest losses as the stock fell by 3.5%.

Let's take a closer look to see what the different types of shareholders can tell us about Yantai Dongcheng Pharmaceutical GroupLtd.

What Does The Institutional Ownership Tell Us About Yantai Dongcheng Pharmaceutical GroupLtd?

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.

Yantai Dongcheng Pharmaceutical GroupLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Yantai Dongcheng Pharmaceutical GroupLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Yantai Dongcheng Pharmaceutical GroupLtd is not owned by hedge funds. The company's largest shareholder is Yantai Dongyi Bioengineering Co., Ltd., with ownership of 15%. Shouyi You is the second largest shareholder owning 13% of common stock, and Pacific Rainbow International, Inc. holds about 3.4% of the company stock. In addition, we found that Zhi Gang Luo, the CEO has 0.6% of the shares allocated to their name.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 23 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Yantai Dongcheng Pharmaceutical GroupLtd

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Yantai Dongcheng Pharmaceutical Group Co.,Ltd.. It has a market capitalization of just CN¥11b, and insiders have CN¥1.5b 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 Yantai Dongcheng Pharmaceutical GroupLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 20%, of the Yantai Dongcheng Pharmaceutical GroupLtd stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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. Be aware that Yantai Dongcheng Pharmaceutical GroupLtd is showing 2 warning signs in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.