Private companies own 29% of ZhongAn Online P & C Insurance Co., Ltd. (HKG:6060) shares but individual investors control 35% of the company

Key Insights

• The considerable ownership by individual investors in ZhongAn Online P & C Insurance indicates that they collectively have a greater say in management and business strategy
• 53% of the business is held by the top 7 shareholders
• 12% of ZhongAn Online P & C Insurance is held by Institutions

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To get a sense of who is truly in control of ZhongAn Online P & C Insurance Co., Ltd. (HKG:6060), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 35% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

And private companies on the other hand have a 29% ownership in the company.

Let's delve deeper into each type of owner of ZhongAn Online P & C Insurance, beginning with the chart below.

See our latest analysis for ZhongAn Online P & C Insurance

What Does The Institutional Ownership Tell Us About ZhongAn Online P & C Insurance?

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.

ZhongAn Online P & C Insurance 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 ZhongAn Online P & C Insurance's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in ZhongAn Online P & C Insurance. Our data shows that Ant Group Co., Ltd. is the largest shareholder with 10% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 10% and 9.1%, of the shares outstanding, respectively.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 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 ZhongAn Online P & C Insurance

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.

We note our data does not show any board members holding shares, personally. We do not see this low level of ownership often, and it is possible our data is imperfect. But shareholders can click here to check if insiders have been selling stock.

General Public Ownership

The general public, who are usually individual investors, hold a 35% stake in ZhongAn Online P & C Insurance. 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 29%, 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.

Public Company Ownership

We can see that public companies hold 24% of the ZhongAn Online P & C Insurance shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand ZhongAn Online P & C Insurance better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with ZhongAn Online P & C Insurance .

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.