Key Insights

• RAISECOM TECHNOLOGYLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 21 shareholders own 48% of the company
• 45% of RAISECOM TECHNOLOGYLtd is held by insiders

If you want to know who really controls RAISECOM TECHNOLOGY CO.,Ltd. (SHSE:603803), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 52% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While the holdings of retail investors took a hit after last week's 14% price drop, insiders with their 45% also suffered.

Let's delve deeper into each type of owner of RAISECOM TECHNOLOGYLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About RAISECOM TECHNOLOGYLtd?

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.

Institutions have a very small stake in RAISECOM TECHNOLOGYLtd. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

RAISECOM TECHNOLOGYLtd is not owned by hedge funds. The company's largest shareholder is Chun Cheng Zhu, with ownership of 8.9%. The second and third largest shareholders are Yue Jie Li and Jian Hong Ren, with an equal amount of shares to their name at 8.9%.

On studying our ownership data, we found that 21 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of RAISECOM TECHNOLOGYLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 information suggests that insiders maintain a significant holding in RAISECOM TECHNOLOGY CO.,Ltd.. Insiders have a CN¥1.1b stake in this CN¥2.5b business. 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, mostly comprising of individual investors, collectively holds 52% of RAISECOM TECHNOLOGYLtd shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that RAISECOM TECHNOLOGYLtd is showing 3 warning signs in our investment analysis , and 1 of those is significant...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.