Key Insights

• Significant insider control over ShenZhen YUTO Packaging Technology implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 59% ownership
• 21% of ShenZhen YUTO Packaging Technology is held by Institutions

To get a sense of who is truly in control of ShenZhen YUTO Packaging Technology Co., Ltd. (SZSE:002831), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So, insiders of ShenZhen YUTO Packaging Technology have a lot at stake and every decision they make on the company's future is important to them from a financial point of view.

Let's take a closer look to see what the different types of shareholders can tell us about ShenZhen YUTO Packaging Technology.

What Does The Institutional Ownership Tell Us About ShenZhen YUTO Packaging Technology?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

ShenZhen YUTO Packaging Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see ShenZhen YUTO Packaging Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in ShenZhen YUTO Packaging Technology. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In ShenZhen YUTO Packaging Technology's case, its Senior Key Executive, Lanlan Wu, is the largest shareholder, holding 49% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 5.4% of the stock. Interestingly, the second-largest shareholder, Huajun Wang is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 2 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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of ShenZhen YUTO Packaging Technology

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own the majority of ShenZhen YUTO Packaging Technology Co., Ltd.. This means they can collectively make decisions for the company. Insiders own CN¥13b worth of shares in the CN¥22b company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public, who are usually individual investors, hold a 16% stake in ShenZhen YUTO Packaging Technology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand ShenZhen YUTO Packaging Technology better, we need to consider many other factors. Take risks for example - ShenZhen YUTO Packaging Technology has 1 warning sign we think you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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