Key Insights

• TES Touch Embedded Solutions (Xiamen)'s significant insider ownership suggests inherent interests in company's expansion
• The top 8 shareholders own 51% of the company
• 11% of TES Touch Embedded Solutions (Xiamen) is held by Institutions

Every investor in TES Touch Embedded Solutions (Xiamen) Co., Ltd. (SZSE:003019) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 43% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week's 9.8% gain.

In the chart below, we zoom in on the different ownership groups of TES Touch Embedded Solutions (Xiamen).

What Does The Institutional Ownership Tell Us About TES Touch Embedded Solutions (Xiamen)?

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.

As you can see, institutional investors have a fair amount of stake in TES Touch Embedded Solutions (Xiamen). This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 TES Touch Embedded Solutions (Xiamen)'s earnings history below. Of course, the future is what really matters.

TES Touch Embedded Solutions (Xiamen) is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Chao-Juei Chiang with 31% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.7% and 3.1% of the stock. Mingfang Li, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of TES Touch Embedded Solutions (Xiamen)

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 TES Touch Embedded Solutions (Xiamen) Co., Ltd.. Insiders have a CN¥1.8b stake in this CN¥4.1b 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

With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over TES Touch Embedded Solutions (Xiamen). 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

We can see that Private Companies own 5.0%, of the shares on issue. 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 TES Touch Embedded Solutions (Xiamen) better, we need to consider many other factors. For instance, we've identified 1 warning sign for TES Touch Embedded Solutions (Xiamen) that you should be aware of.

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.