Key Insights

• The considerable ownership by individual investors in Dongguan Kingsun OptoelectronicLtd indicates that they collectively have a greater say in management and business strategy
• A total of 8 investors have a majority stake in the company with 53% ownership
• Insiders own 26% of Dongguan Kingsun OptoelectronicLtd

Every investor in Dongguan Kingsun Optoelectronic Co.,Ltd. (SZSE:002638) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 41% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that benefitted the most from last week's CN¥440m market cap gain, insiders too had a 26% share in those profits.

Let's delve deeper into each type of owner of Dongguan Kingsun OptoelectronicLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Dongguan Kingsun OptoelectronicLtd?

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.

As you can see, institutional investors have a fair amount of stake in Dongguan Kingsun OptoelectronicLtd. 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 Dongguan Kingsun OptoelectronicLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Dongguan Kingsun OptoelectronicLtd. The company's largest shareholder is Kingsun Enterprises Group Co., Ltd, with ownership of 10%. With 7.6% and 6.7% of the shares outstanding respectively, Shandong Financial Asset Management Co., Ltd., Asset Management Arm and Huaxia Life Insurance Co., Ltd. are the second and third largest shareholders.

We also observed that the top 8 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 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 Dongguan Kingsun OptoelectronicLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 Dongguan Kingsun Optoelectronic Co.,Ltd.. Insiders have a CN¥938m stake in this CN¥3.6b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 41% stake in Dongguan Kingsun OptoelectronicLtd. 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

It seems that Private Companies own 17%, of the Dongguan Kingsun OptoelectronicLtd stock. 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 Dongguan Kingsun OptoelectronicLtd better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.