Key Insights

• Qingdao Huicheng Environmental Technology Group's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 49% of the business is held by the top 25 shareholders
• Insider ownership in Qingdao Huicheng Environmental Technology Group is 32%

A look at the shareholders of Qingdao Huicheng Environmental Technology Group Co., Ltd. (SZSE:300779) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 51% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 5.4% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 32% stock also took a hit.

Let's take a closer look to see what the different types of shareholders can tell us about Qingdao Huicheng Environmental Technology Group.

What Does The Institutional Ownership Tell Us About Qingdao Huicheng Environmental Technology Group?

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.

We can see that Qingdao Huicheng Environmental Technology Group does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Qingdao Huicheng Environmental Technology Group, (below). Of course, keep in mind that there are other factors to consider, too.

Qingdao Huicheng Environmental Technology Group is not owned by hedge funds. Our data shows that Xingong Zhang is the largest shareholder with 27% of shares outstanding. Qingdao Huicheng Xinde Investment Co., Ltd. is the second largest shareholder owning 7.8% of common stock, and Min Zhang holds about 5.0% of the company stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 Qingdao Huicheng Environmental Technology Group

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.

It seems insiders own a significant proportion of Qingdao Huicheng Environmental Technology Group Co., Ltd.. Insiders own CN¥5.3b worth of shares in the CN¥17b company. That's quite meaningful. 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, mostly comprising of individual investors, collectively holds 51% of Qingdao Huicheng Environmental Technology Group shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

It seems that Private Companies own 9.6%, of the Qingdao Huicheng Environmental Technology Group 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Qingdao Huicheng Environmental Technology Group better, we need to consider many other factors. Take risks for example - Qingdao Huicheng Environmental Technology Group has 4 warning signs (and 2 which are a bit unpleasant) we think you should know about.

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.

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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.