Gresgying Digital Energy Technology Co.,Ltd's (SHSE:600212) Market Cap Dropped CN¥956m Last Week; Individual Investors Bore the Brunt
Gresgying Digital Energy Technology Co.,Ltd's (SHSE:600212) Market Cap Dropped CN¥956m Last Week; Individual Investors Bore the Brunt
Key Insights
- Significant control over Gresgying Digital Energy TechnologyLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
- 45% of the business is held by the top 25 shareholders
- Past performance of a company along with ownership data serve to give a strong idea about prospects for a business
Every investor in Gresgying Digital Energy Technology Co.,Ltd (SHSE:600212) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 55% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And last week, individual investors endured the biggest losses as the stock fell by 15%.
Let's delve deeper into each type of owner of Gresgying Digital Energy TechnologyLtd, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Gresgying Digital Energy 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.
As you can see, institutional investors have a fair amount of stake in Gresgying Digital Energy TechnologyLtd. 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. 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 Gresgying Digital Energy TechnologyLtd's earnings history below. Of course, the future is what really matters.
Gresgying Digital Energy TechnologyLtd is not owned by hedge funds. Beihai Jingru Industrial Co., Ltd. is currently the company's largest shareholder with 22% of shares outstanding. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 2.7% by the third-largest shareholder. In addition, we found that Xingmin Li, the CEO has 0.7% of the shares allocated to their name.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Gresgying Digital Energy TechnologyLtd
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
We can see that insiders own shares in Gresgying Digital Energy Technology Co.,Ltd. In their own names, insiders own CN¥134m worth of stock in the CN¥5.4b company. This shows at least some alignment. 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 substantial 55% stake in Gresgying Digital Energy TechnologyLtd, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
Private Company Ownership
It seems that Private Companies own 35%, of the Gresgying Digital Energy TechnologyLtd 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:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Gresgying Digital Energy TechnologyLtd is showing 2 warning signs in our investment analysis , 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.