Every investor in Shaanxi Panlong Pharmaceutical Group Limited By Share Ltd (SZSE:002864) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
Shaanxi Panlong Pharmaceutical Group Limited By Share is not a large company by global standards. It has a market capitalization of CN¥3.9b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are not really that prevalent on the share registry. We can zoom in on the different ownership groups, to learn more about Shaanxi Panlong Pharmaceutical Group Limited By Share.
View our latest analysis for Shaanxi Panlong Pharmaceutical Group Limited By Share
SZSE:002864 Ownership Breakdown May 6th 2022What Does The Lack Of Institutional Ownership Tell Us About Shaanxi Panlong Pharmaceutical Group Limited By Share?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Shaanxi Panlong Pharmaceutical Group Limited By Share, for yourself, below.
SZSE:002864 Earnings and Revenue Growth May 6th 2022Shaanxi Panlong Pharmaceutical Group Limited By Share is not owned by hedge funds. The company's largest shareholder is Xiaolin Xie, with ownership of 43%. The second and third largest shareholders are Shuiping Zhang and Zhihong Zhang, with an equal amount of shares to their name at 1.3%. Zhihong Zhang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
A deeper look at our ownership data shows that the top 15 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Shaanxi Panlong Pharmaceutical Group Limited By Share
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 Shaanxi Panlong Pharmaceutical Group Limited By Share Ltd. Insiders have a CN¥1.9b stake in this CN¥3.9b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a substantial 50% stake in Shaanxi Panlong Pharmaceutical Group Limited By Share, suggesting it is a fairly popular stock. 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.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Shaanxi Panlong Pharmaceutical Group Limited By Share you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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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