Key Insights

• Significant insider control over Shijiazhuang Shangtai Technology implies vested interests in company growth
• 52% of the business is held by the top 3 shareholders
• Institutions own 17% of Shijiazhuang Shangtai Technology

Every investor in Shijiazhuang Shangtai Technology Co., Ltd. (SZSE:001301) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 41% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, insiders endured the biggest losses as the stock fell by 3.8%.

Let's delve deeper into each type of owner of Shijiazhuang Shangtai Technology, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Shijiazhuang Shangtai Technology?

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 Shijiazhuang Shangtai Technology. 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 Shijiazhuang Shangtai Technology's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Shijiazhuang Shangtai Technology. Looking at our data, we can see that the largest shareholder is the CEO Yongyue Ouyang with 37% of shares outstanding. Ningbo Meishan Bonded Port Area Chendao Investment Partnership Enterprise (L.P.) is the second largest shareholder owning 10% of common stock, and CMB International Capital Management (Shenzhen) Co, Ltd. holds about 5.5% of the company stock.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Shijiazhuang Shangtai Technology

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.

It seems insiders own a significant proportion of Shijiazhuang Shangtai Technology Co., Ltd.. Insiders own CN¥4.7b worth of shares in the CN¥11b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shijiazhuang Shangtai Technology. 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 Equity Ownership

Private equity firms hold a 16% stake in Shijiazhuang Shangtai Technology. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shijiazhuang Shangtai Technology better, we need to consider many other factors. For example, we've discovered 3 warning signs for Shijiazhuang Shangtai Technology that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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