Institutions profited after Leshan Giantstar Farming&Husbandry Corporation Limited's (SHSE:603477) market cap rose CN¥388m last week but private companies profited the most

Simply Wall St · 10/19 00:33

Key Insights

  • Significant control over Leshan Giantstar Farming&Husbandry by private companies implies that the general public has more power to influence management and governance-related decisions
  • A total of 3 investors have a majority stake in the company with 50% ownership
  • Institutions own 26% of Leshan Giantstar Farming&Husbandry

Every investor in Leshan Giantstar Farming&Husbandry Corporation Limited (SHSE:603477) should be aware of the most powerful shareholder groups. With 46% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 4.2% increase in the stock price last week, private companies profited the most, but institutions who own 26% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Leshan Giantstar Farming&Husbandry.

Check out our latest analysis for Leshan Giantstar Farming&Husbandry

ownership-breakdown
SHSE:603477 Ownership Breakdown October 19th 2024

What Does The Institutional Ownership Tell Us About Leshan Giantstar Farming&Husbandry?

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.

Leshan Giantstar Farming&Husbandry 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. 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 Leshan Giantstar Farming&Husbandry's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SHSE:603477 Earnings and Revenue Growth October 19th 2024

We note that hedge funds don't have a meaningful investment in Leshan Giantstar Farming&Husbandry. Sichuan Giant Star Enterprise Group Co., Ltd. is currently the largest shareholder, with 29% of shares outstanding. With 17% and 4.3% of the shares outstanding respectively, Sichuan Hebang Investment Group Co., Ltd. and Zhong Ou Fund Management Co., Ltd are the second and third largest shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 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 Leshan Giantstar Farming&Husbandry

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.

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 some shares in Leshan Giantstar Farming&Husbandry Corporation Limited. The insiders have a meaningful stake worth CN¥397m. Most would see this as a real positive. It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Leshan Giantstar Farming&Husbandry. 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

Our data indicates that Private Companies hold 46%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Leshan Giantstar Farming&Husbandry better, we need to consider many other factors. For instance, we've identified 1 warning sign for Leshan Giantstar Farming&Husbandry 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.