Yahoo Finance Public companies are DouYu International Holdings Limited's (NASDAQ:DOYU) biggest owners and were hit after market cap dropped US$65m
A look at the shareholders of DouYu International Holdings Limited (NASDAQ:DOYU) can tell us which group is most powerful. With 38% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
And following last week's 18% decline in share price, public companies suffered the most losses.
Let's delve deeper into each type of owner of DouYu International Holdings, beginning with the chart below.
See our latest analysis for DouYu International Holdings
What Does The Institutional Ownership Tell Us About DouYu International Holdings?
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.
DouYu International Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 DouYu International Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in DouYu International Holdings. Tencent Holdings Limited is currently the company's largest shareholder with 38% of shares outstanding. With 17% and 4.1% of the shares outstanding respectively, Shaojie Chen and Oasis Management Company Ltd. are the second and third largest shareholders. Shaojie Chen, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
To make our study more interesting, we found that the top 2 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of DouYu International Holdings
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.
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.
Our most recent data indicates that insiders own a reasonable proportion of DouYu International Holdings Limited. Insiders own US$56m worth of shares in the US$303m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 24% stake in the company, and hence can't easily be ignored. 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.
Public Company Ownership
Public companies currently own 38% of DouYu International Holdings stock. 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 DouYu International Holdings better, we need to consider many other factors. For instance, we've identified 1 warning sign for DouYu International Holdings that you should be aware of.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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