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Shenyang Blue Silver Industry Automation Equipment Co., Ltd's (SZSE:300293) Market Cap Dropped CN¥433m Last Week; Individual Investors Bore the Brunt

Simply Wall St ·  Jul 6 20:53

Key Insights

  • Significant control over Shenyang Blue Silver Industry Automation Equipment by individual investors implies that the general public has more power to influence management and governance-related decisions
  • The top 5 shareholders own 50% of the company
  • Insiders own 24% of Shenyang Blue Silver Industry Automation Equipment

If you want to know who really controls Shenyang Blue Silver Industry Automation Equipment Co., Ltd (SZSE:300293), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 48% to be precise, is individual investors. 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 9.0%.

Let's take a closer look to see what the different types of shareholders can tell us about Shenyang Blue Silver Industry Automation Equipment.

ownership-breakdown
SZSE:300293 Ownership Breakdown July 7th 2024

What Does The Institutional Ownership Tell Us About Shenyang Blue Silver Industry Automation Equipment?

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.

Institutions have a very small stake in Shenyang Blue Silver Industry Automation Equipment. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

earnings-and-revenue-growth
SZSE:300293 Earnings and Revenue Growth July 7th 2024

Shenyang Blue Silver Industry Automation Equipment is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Shenyang Lanying Automatic Control Co., Ltd. with 25% of shares outstanding. In comparison, the second and third largest shareholders hold about 24% and 1.0% of the stock.

On looking further, we found that 50% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Shenyang Blue Silver Industry Automation Equipment

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 Shenyang Blue Silver Industry Automation Equipment Co., Ltd. Insiders own CN¥1.0b worth of shares in the CN¥4.4b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 48% stake in the company, and hence can't easily be ignored. 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

We can see that Private Companies own 26%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. Be aware that Shenyang Blue Silver Industry Automation Equipment is showing 2 warning signs in our investment analysis , you should know about...

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.

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

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