Key Insights

• Significant control over Puya Semiconductor (Shanghai) by individual investors implies that the general public has more power to influence management and governance-related decisions
• 50% of the business is held by the top 6 shareholders
• Insiders own 24% of Puya Semiconductor (Shanghai)

To get a sense of who is truly in control of Puya Semiconductor (Shanghai) Co., Ltd. (SHSE:688766), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 32% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 5.4% decrease in the stock price last week, individual investors suffered the most losses, but institutions who own 26% stock also took a hit.

Let's take a closer look to see what the different types of shareholders can tell us about Puya Semiconductor (Shanghai).

What Does The Institutional Ownership Tell Us About Puya Semiconductor (Shanghai)?

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.

As you can see, institutional investors have a fair amount of stake in Puya Semiconductor (Shanghai). This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Puya Semiconductor (Shanghai)'s earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Puya Semiconductor (Shanghai). The company's CEO Nan Wang is the largest shareholder with 19% of shares outstanding. Shanghai Zhiqi Enterprise Management Consulting Partnership Enterprise (Limited Partnership) is the second largest shareholder owning 18% of common stock, and Zhaogui Li holds about 4.9% of the company stock. Interestingly, the third-largest shareholder, Zhaogui Li is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Puya Semiconductor (Shanghai)

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

It seems insiders own a significant proportion of Puya Semiconductor (Shanghai) Co., Ltd.. It has a market capitalization of just CN¥9.4b, and insiders have CN¥2.2b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Puya Semiconductor (Shanghai). 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

It seems that Private Companies own 18%, of the Puya Semiconductor (Shanghai) 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 Puya Semiconductor (Shanghai) is showing 1 warning sign in our investment analysis , you should know about...

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com