Key Insights

• The considerable ownership by retail investors in Zhejiang Starry PharmaceuticalLtd indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 11 shareholders
• Insider ownership in Zhejiang Starry PharmaceuticalLtd is 36%

To get a sense of who is truly in control of Zhejiang Starry Pharmaceutical Co.,Ltd. (SHSE:603520), it is important to understand the ownership structure of the business. With 44% 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).

While insiders who own 36% came under pressure after market cap dropped to CN¥3.9b last week,retail investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Zhejiang Starry PharmaceuticalLtd.

Check out our latest analysis for Zhejiang Starry PharmaceuticalLtd

What Does The Institutional Ownership Tell Us About Zhejiang Starry PharmaceuticalLtd?

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.

Zhejiang Starry PharmaceuticalLtd 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. 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 Zhejiang Starry PharmaceuticalLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Zhejiang Starry PharmaceuticalLtd is not owned by hedge funds. Our data shows that Jian Hu is the largest shareholder with 18% of shares outstanding. In comparison, the second and third largest shareholders hold about 18% and 3.4% of the stock.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 11 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Zhejiang Starry PharmaceuticalLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that insiders maintain a significant holding in Zhejiang Starry Pharmaceutical Co.,Ltd.. Insiders have a CN¥1.4b stake in this CN¥3.9b business. 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 44% stake in Zhejiang Starry PharmaceuticalLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. For instance, we've identified 2 warning signs for Zhejiang Starry PharmaceuticalLtd that you should be aware of.

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.