Key Insights

• Guangzhou Risong Intelligent Technology Holding's significant insider ownership suggests inherent interests in company's expansion
• A total of 7 investors have a majority stake in the company with 50% ownership
• 15% of Guangzhou Risong Intelligent Technology Holding is held by Institutions

Every investor in Guangzhou Risong Intelligent Technology Holding Co., Ltd. (SHSE:688090) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 46% ownership. 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 9.4% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Guangzhou Risong Intelligent Technology Holding.

What Does The Institutional Ownership Tell Us About Guangzhou Risong Intelligent Technology Holding?

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 Guangzhou Risong Intelligent Technology Holding. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Guangzhou Risong Intelligent Technology Holding's historic earnings and revenue below, but keep in mind there's always more to the story.

Guangzhou Risong Intelligent Technology Holding is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Zhiqiang Sun with 24% of shares outstanding. With 9.7% and 6.0% of the shares outstanding respectively, Xiping Ke and Shenzhen Qianhai Mibei Private Equity Fund Management Co., Ltd are the second and third largest shareholders.

We did some more digging and found that 7 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Guangzhou Risong Intelligent Technology Holding

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.

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 information suggests that insiders maintain a significant holding in Guangzhou Risong Intelligent Technology Holding Co., Ltd.. Insiders have a CN¥1.9b stake in this CN¥4.2b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 38% stake in Guangzhou Risong Intelligent Technology Holding. 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 Guangzhou Risong Intelligent Technology Holding better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Guangzhou Risong Intelligent Technology Holding you should be aware of, and 2 of them shouldn't be ignored.

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.