Key Insights

• The considerable ownership by private companies in Ningbo Sunrise Elc TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• The top 4 shareholders own 54% of the company
• 24% of Ningbo Sunrise Elc TechnologyLtd is held by insiders

If you want to know who really controls Ningbo Sunrise Elc Technology Co.,Ltd (SZSE:002937), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 39% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders, who own 24% shares weren't spared from last week's CN¥792m market cap drop, private companies as a group suffered the maximum losses

Let's delve deeper into each type of owner of Ningbo Sunrise Elc TechnologyLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Ningbo Sunrise Elc TechnologyLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Ningbo Sunrise Elc TechnologyLtd 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 Ningbo Sunrise Elc TechnologyLtd's earnings history below. Of course, the future is what really matters.

Ningbo Sunrise Elc TechnologyLtd is not owned by hedge funds. Zhongliang Zhang is currently the company's largest shareholder with 24% of shares outstanding. With 14% and 8.8% of the shares outstanding respectively, Ningbo Hezhihe Investment Management Partnership Enterprise (Limited Partnership) and Ningbo Hezhirui Investment Management Partnership Enterprise (Limited Partnership) are the second and third largest shareholders.

On looking further, we found that 54% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Ningbo Sunrise Elc TechnologyLtd

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

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.

It seems insiders own a significant proportion of Ningbo Sunrise Elc Technology Co.,Ltd. It has a market capitalization of just CN¥6.3b, and insiders have CN¥1.5b worth of shares in their own names. 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-- including retail investors -- own 20% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 39%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Ningbo Sunrise Elc TechnologyLtd you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com