Key Insights

• Insiders appear to have a vested interest in Cinderson Tech (Suzhou)'s growth, as seen by their sizeable ownership
• The largest shareholder of the company is Yunfang Zhu with a 70% stake
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Cinderson Tech (Suzhou) Co., Ltd. (SHSE:603344) should be aware of the most powerful shareholder groups. With 70% stake, individual insiders 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).

As a result, insiders scored the highest last week as the company hit CN¥4.5b market cap following a 9.5% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Cinderson Tech (Suzhou).

What Does The Institutional Ownership Tell Us About Cinderson Tech (Suzhou)?

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.

Less than 5% of Cinderson Tech (Suzhou) is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Cinderson Tech (Suzhou) is not owned by hedge funds. From our data, we infer that the largest shareholder is Yunfang Zhu (who also holds the title of Senior Key Executive) with 70% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. With 2.8% and 2.6% of the shares outstanding respectively, Shenzhen Dachen Caizhi Venture Capital Management Co., Ltd. and Ningbo Qijing Business Consulting Partnership (Limited Partnership) are the second and third largest shareholders.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Cinderson Tech (Suzhou)

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.

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 own more than half of Cinderson Tech (Suzhou) Co., Ltd.. This gives them effective control of the company. So they have a CN¥3.1b stake in this CN¥4.5b business. 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 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Cinderson Tech (Suzhou). While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Cinderson Tech (Suzhou) you should be aware of, and 1 of them is concerning.

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.