Key Insights

• Significant control over SDIC Intelligence Xiamen Information by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 6 shareholders own 50% of the company
• Insiders own 29% of SDIC Intelligence Xiamen Information

A look at the shareholders of SDIC Intelligence Xiamen Information Co., Ltd. (SZSE:300188) can tell us which group is most powerful. With 41% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While the holdings of individual investors took a hit after last week's 6.5% price drop, insiders with their 29% also suffered.

Let's take a closer look to see what the different types of shareholders can tell us about SDIC Intelligence Xiamen Information.

What Does The Institutional Ownership Tell Us About SDIC Intelligence Xiamen Information?

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.

SDIC Intelligence Xiamen Information already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 SDIC Intelligence Xiamen Information's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in SDIC Intelligence Xiamen Information. The company's largest shareholder is State Development & Investment Corp., Ltd., with ownership of 21%. Meanwhile, the second and third largest shareholders, hold 15% and 7.5%, of the shares outstanding, respectively. Guolin Li, who is the third-largest shareholder, also happens to hold the title of Member of Corporate Board.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of SDIC Intelligence Xiamen Information

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that insiders maintain a significant holding in SDIC Intelligence Xiamen Information Co., Ltd.. Insiders own CN¥2.6b worth of shares in the CN¥8.8b company. That's quite meaningful. 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

The general public, who are usually individual investors, hold a 41% stake in SDIC Intelligence Xiamen Information. 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 21%, of the shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand SDIC Intelligence Xiamen Information better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.