Key Insights

• Chengdu Olymvax Biopharmaceuticals' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 9 investors have a majority stake in the company with 50% ownership
• Insiders own 31% of Chengdu Olymvax Biopharmaceuticals

A look at the shareholders of Chengdu Olymvax Biopharmaceuticals Inc. (SHSE:688319) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 41% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 14% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 31% stock also took a hit.

Let's delve deeper into each type of owner of Chengdu Olymvax Biopharmaceuticals, beginning with the chart below.

Check out our latest analysis for Chengdu Olymvax Biopharmaceuticals

What Does The Institutional Ownership Tell Us About Chengdu Olymvax Biopharmaceuticals?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Chengdu Olymvax Biopharmaceuticals 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 Chengdu Olymvax Biopharmaceuticals, (below). Of course, keep in mind that there are other factors to consider, too.

Chengdu Olymvax Biopharmaceuticals is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Chongqing Wushan Biotechnology Co., Ltd. with 18% of shares outstanding. With 7.5% and 6.4% of the shares outstanding respectively, Fan Fan and Pengfei Zhang are the second and third largest shareholders. Two of the top three shareholders happen to be Senior Key Executive and Chairman of Corporate Board, respectively. That is, insiders feature higher up in the heirarchy of the company's top shareholders. In addition, we found that Shaowen Fan, the CEO has 3.9% of the shares allocated to their name.

We did some more digging and found that 9 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Chengdu Olymvax Biopharmaceuticals

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 Chengdu Olymvax Biopharmaceuticals Inc.. It has a market capitalization of just CN¥6.4b, and insiders have CN¥2.0b worth of shares in their own names. 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

With a 41% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Chengdu Olymvax Biopharmaceuticals. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 21%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Chengdu Olymvax Biopharmaceuticals better, we need to consider many other factors. Take risks for example - Chengdu Olymvax Biopharmaceuticals has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.