Key Insights

• Significant insider control over Liaoning Dingjide Petrochemical implies vested interests in company growth
• The largest shareholder of the company is Zaiming Zhang with a 53% stake
• Institutions own 12% of Liaoning Dingjide Petrochemical

A look at the shareholders of Liaoning Dingjide Petrochemical Co., Ltd. (SHSE:603255) can tell us which group is most powerful. With 72% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, insiders endured the biggest losses as the stock fell by 7.3%.

In the chart below, we zoom in on the different ownership groups of Liaoning Dingjide Petrochemical.

See our latest analysis for Liaoning Dingjide Petrochemical

What Does The Institutional Ownership Tell Us About Liaoning Dingjide Petrochemical?

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 Liaoning Dingjide Petrochemical. 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. 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 Liaoning Dingjide Petrochemical's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Liaoning Dingjide Petrochemical. Our data suggests that Zaiming Zhang, who is also the company's Top Key Executive, holds the most number of shares at 53%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. Weirong Xin is the second largest shareholder owning 17% of common stock, and Yongqiang Xuan holds about 1.9% of the company stock. Interestingly, the second and third-largest shareholders also happen to be the Chief Executive Officer and Member of the Board of Directors, respectively. This once again signifies considerable insider ownership amongst the company's top shareholders.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Liaoning Dingjide Petrochemical

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems that insiders own more than half the Liaoning Dingjide Petrochemical Co., Ltd. stock. This gives them a lot of power. So they have a CN¥3.4b stake in this CN¥4.8b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 Liaoning Dingjide Petrochemical you should know about.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.