Key Insights

• Significant control over ShenZhen RoadRover TechnologyLtd by public companies implies that the general public has more power to influence management and governance-related decisions
• 54% of the company is held by a single shareholder (Zoomlion Heavy Industry Science and Technology Co., Ltd.)
• Insiders own 14% of ShenZhen RoadRover TechnologyLtd

If you want to know who really controls ShenZhen RoadRover Technology Co.,Ltd (SZSE:002813), then you'll have to look at the makeup of its share registry. With 54% stake, public companies 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).

Clearly, public companies benefitted the most after the company's market cap rose by CN¥420m last week.

Let's delve deeper into each type of owner of ShenZhen RoadRover TechnologyLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About ShenZhen RoadRover TechnologyLtd?

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 ShenZhen RoadRover 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see ShenZhen RoadRover TechnologyLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

ShenZhen RoadRover TechnologyLtd is not owned by hedge funds. Our data shows that Zoomlion Heavy Industry Science and Technology Co., Ltd. is the largest shareholder with 54% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 12% and 4.7% of the shares outstanding respectively, Xiu Mei Guo and Wuhu Hongwei Co-Stone Investment Fund Management Partnership Enterprise (Limited Partnership) are the second and third largest shareholders.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of ShenZhen RoadRover TechnologyLtd

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.

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.

It seems insiders own a significant proportion of ShenZhen RoadRover Technology Co.,Ltd. It has a market capitalization of just CN¥3.5b, and insiders have CN¥484m worth of shares in their own names. 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, who are usually individual investors, hold a 26% stake in ShenZhen RoadRover 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.

Public Company Ownership

We can see that public companies hold 54% of the ShenZhen RoadRover TechnologyLtd shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with ShenZhen RoadRover TechnologyLtd .

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