Key Insights

• Insiders appear to have a vested interest in Shanghai Suochen Information TechnologyLtd's growth, as seen by their sizeable ownership
• 51% of the business is held by the top 6 shareholders
• Institutional ownership in Shanghai Suochen Information TechnologyLtd is 23%

Every investor in Shanghai Suochen Information Technology Co.,Ltd. (SHSE:688507) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 27% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, insiders endured the biggest losses as the stock fell by 7.5%.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai Suochen Information TechnologyLtd.

What Does The Institutional Ownership Tell Us About Shanghai Suochen Information 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.

We can see that Shanghai Suochen Information TechnologyLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Shanghai Suochen Information TechnologyLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Shanghai Suochen Information TechnologyLtd. Our data shows that Hao Chen is the largest shareholder with 27% of shares outstanding. Ningbo Chenshi Enterprise Management Partnership Enterprise (Limited Partnership) is the second largest shareholder owning 8.1% of common stock, and Ningbo Puchen Enterprise Management Partnership Enterprise (Limited Partnership) holds about 7.1% of the company stock.

We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 Shanghai Suochen Information TechnologyLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 a reasonable proportion of Shanghai Suochen Information Technology Co.,Ltd.. Insiders have a CN¥1.5b stake in this CN¥5.7b 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

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shanghai Suochen Information TechnologyLtd. 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.

Private Company Ownership

Our data indicates that Private Companies hold 24%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shanghai Suochen Information TechnologyLtd better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with Shanghai Suochen Information TechnologyLtd .

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.