Key Insights

• The considerable ownership by retail investors in Suzhou Kingswood Education Technology indicates that they collectively have a greater say in management and business strategy
• 47% of the business is held by the top 25 shareholders
• Insiders own 38% of Suzhou Kingswood Education Technology

If you want to know who really controls Suzhou Kingswood Education Technology Co., Ltd. (SZSE:300192), 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 53% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While retail investors were the group that reaped the most benefits after last week's 9.9% price gain, insiders also received a 38% cut.

In the chart below, we zoom in on the different ownership groups of Suzhou Kingswood Education Technology.

What Does The Institutional Ownership Tell Us About Suzhou Kingswood Education Technology?

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 Suzhou Kingswood Education Technology. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Suzhou Kingswood Education Technology's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Suzhou Kingswood Education Technology. The company's CEO Xianliang Wu is the largest shareholder with 28% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.0% and 2.4%, of the shares outstanding, respectively. Interestingly, the third-largest shareholder, Bing Dong is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Suzhou Kingswood Education Technology

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Our most recent data indicates that insiders own a reasonable proportion of Suzhou Kingswood Education Technology Co., Ltd.. It has a market capitalization of just CN¥5.1b, and insiders have CN¥2.0b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 53% of Suzhou Kingswood Education Technology. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Suzhou Kingswood Education Technology better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Suzhou Kingswood Education Technology .

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.