Key Insights

• Insiders appear to have a vested interest in Shenzhen S-king Intelligent Equipment's growth, as seen by their sizeable ownership
• 51% of the business is held by the top 6 shareholders
• Institutional ownership in Shenzhen S-king Intelligent Equipment is 18%

To get a sense of who is truly in control of Shenzhen S-king Intelligent Equipment Co., Ltd. (SHSE:688328), it is important to understand the ownership structure of the business. With 39% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit CN¥2.7b market cap following a 29% gain in the stock.

Let's delve deeper into each type of owner of Shenzhen S-king Intelligent Equipment, beginning with the chart below.

Check out our latest analysis for Shenzhen S-king Intelligent Equipment

What Does The Institutional Ownership Tell Us About Shenzhen S-king Intelligent Equipment?

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.

Shenzhen S-king Intelligent Equipment 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Shenzhen S-king Intelligent Equipment, (below). Of course, keep in mind that there are other factors to consider, too.

Shenzhen S-king Intelligent Equipment is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Yihong Huang with 34% of shares outstanding. Shenzhen S-King Investment Co., Ltd. is the second largest shareholder owning 6.3% of common stock, and Xinming Zhang holds about 4.1% of the company stock. Interestingly, the third-largest shareholder, Xinming Zhang is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

We also observed that the top 6 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Shenzhen S-king Intelligent Equipment

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

Our most recent data indicates that insiders own a reasonable proportion of Shenzhen S-king Intelligent Equipment Co., Ltd.. Insiders have a CN¥1.0b stake in this CN¥2.7b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in Shenzhen S-king Intelligent Equipment. 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 7.0%, 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Shenzhen S-king Intelligent Equipment (including 1 which makes us a bit uncomfortable) .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.