Key Insights

• Significantly high institutional ownership implies Kunshan GuoLi Electronic Technology's stock price is sensitive to their trading actions
• The top 8 shareholders own 51% of the company
• Insider ownership in Kunshan GuoLi Electronic Technology is 32%

If you want to know who really controls Kunshan GuoLi Electronic Technology Co., Ltd. (SHSE:688103), then you'll have to look at the makeup of its share registry. With 34% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And institutional investors endured the highest losses after the company's share price fell by 18% last week. Needless to say, the recent loss which further adds to the one-year loss to shareholders of 53% might not go down well especially with this category of shareholders. Also referred to as "smart money", institutions have a lot of sway over how a stock's price moves. As a result, if the downtrend continues, institutions may face pressures to sell Kunshan GuoLi Electronic Technology, which might have negative implications on individual investors.

In the chart below, we zoom in on the different ownership groups of Kunshan GuoLi Electronic Technology.

What Does The Institutional Ownership Tell Us About Kunshan GuoLi Electronic 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 Kunshan GuoLi Electronic Technology. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Kunshan GuoLi Electronic Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Kunshan GuoLi Electronic Technology is not owned by hedge funds. Jianping Yin is currently the largest shareholder, with 28% of shares outstanding. Kunshan Guoyi Investment Management Center (Limited Partnership) is the second largest shareholder owning 6.0% of common stock, and Jiangsu Ruihua Venture Capital Management Co., Ltd. holds about 3.9% of the company stock. Additionally, the company's CEO Hao Huang directly holds 1.3% of the total shares outstanding.

We did some more digging and found that 8 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 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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Kunshan GuoLi Electronic Technology

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.

Our most recent data indicates that insiders own a reasonable proportion of Kunshan GuoLi Electronic Technology Co., Ltd.. It has a market capitalization of just CN¥3.0b, and insiders have CN¥963m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Kunshan GuoLi Electronic 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 Company Ownership

Our data indicates that Private Companies hold 7.4%, of the company's shares. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Kunshan GuoLi Electronic Technology that you should be aware of before investing here.

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.