Key Insights

• Dongguan Golden Sun AbrasivesLtd's significant insider ownership suggests inherent interests in company's expansion
• A total of 9 investors have a majority stake in the company with 51% ownership
• 17% of Dongguan Golden Sun AbrasivesLtd is held by Institutions

A look at the shareholders of Dongguan Golden Sun Abrasives Co.,Ltd (SZSE:300606) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 43% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit CN¥2.8b market cap following a 16% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Dongguan Golden Sun AbrasivesLtd.

What Does The Institutional Ownership Tell Us About Dongguan Golden Sun AbrasivesLtd?

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 Dongguan Golden Sun AbrasivesLtd. 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. 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 Dongguan Golden Sun AbrasivesLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Dongguan Golden Sun AbrasivesLtd. Looking at our data, we can see that the largest shareholder is Xiu Ying Hu with 20% of shares outstanding. Lu Yang is the second largest shareholder owning 17% of common stock, and Hunan Fuchuan Private Investment Fund Management Co., Ltd. holds about 4.0% of the company stock. Lu Yang, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Dongguan Golden Sun AbrasivesLtd

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.

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 Dongguan Golden Sun Abrasives Co.,Ltd. Insiders own CN¥1.2b worth of shares in the CN¥2.8b company. 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 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dongguan Golden Sun AbrasivesLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Dongguan Golden Sun AbrasivesLtd better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Dongguan Golden Sun AbrasivesLtd you should be aware of, and 3 of them make us uncomfortable.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.