To get a sense of who is truly in control of Lizhong Sitong Light Alloys Group Co., Ltd. (SZSE:300428), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private companies with 39% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Private companies gained the most after market cap touched CN¥25b last week, while insiders who own 34% also benefitted.

Let's delve deeper into each type of owner of Lizhong Sitong Light Alloys Group, beginning with the chart below.

Check out our latest analysis for Lizhong Sitong Light Alloys Group

What Does The Institutional Ownership Tell Us About Lizhong Sitong Light Alloys 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.

As you can see, institutional investors have a fair amount of stake in Lizhong Sitong Light Alloys Group. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Lizhong Sitong Light Alloys Group's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Lizhong Sitong Light Alloys Group. Our data shows that Li Zhong Investment Ltd is the largest shareholder with 37% of shares outstanding. The second and third largest shareholders are Liguo Zang and Lizhong Zang, with an equal amount of shares to their name at 11%. Furthermore, CEO Yongxing Zang is the owner of 11% of the company's shares.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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 Lizhong Sitong Light Alloys Group

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 most recent data indicates that insiders own a reasonable proportion of Lizhong Sitong Light Alloys Group Co., Ltd.. Insiders own CN¥8.4b worth of shares in the CN¥25b 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, who are usually individual investors, hold a 19% stake in Lizhong Sitong Light Alloys Group. 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 39%, of the Lizhong Sitong Light Alloys Group stock. 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 Lizhong Sitong Light Alloys Group better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Lizhong Sitong Light Alloys Group (including 3 which are a bit concerning) .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.