Key Insights

• Hubei Feilihua Quartz Glass' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 13 investors have a majority stake in the company with 51% ownership
• Insider ownership in Hubei Feilihua Quartz Glass is 18%

To get a sense of who is truly in control of Hubei Feilihua Quartz Glass Co., Ltd. (SZSE:300395), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 38% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While the holdings of retail investors took a hit after last week's 5.7% price drop, institutions with their 24% holdings also suffered.

In the chart below, we zoom in on the different ownership groups of Hubei Feilihua Quartz Glass.

What Does The Institutional Ownership Tell Us About Hubei Feilihua Quartz Glass?

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.

We can see that Hubei Feilihua Quartz Glass does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Hubei Feilihua Quartz Glass' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Hubei Feilihua Quartz Glass. National Council for Social Security Fund is currently the company's largest shareholder with 14% of shares outstanding. Jiagui Deng is the second largest shareholder owning 7.5% of common stock, and Xuemin Wu holds about 6.4% of the company stock. Xuemin Wu, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Additionally, the company's CEO Chunli Shang directly holds 0.7% of the total shares outstanding.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Hubei Feilihua Quartz Glass

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems insiders own a significant proportion of Hubei Feilihua Quartz Glass Co., Ltd.. Insiders own CN¥2.7b worth of shares in the CN¥15b company. That's quite meaningful. 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

With a 38% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hubei Feilihua Quartz Glass. 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

It seems that Private Companies own 6.0%, of the Hubei Feilihua Quartz Glass stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Hubei Feilihua Quartz Glass has 1 warning sign we think you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.