Key Insights

• Significantly high institutional ownership implies Shanghai Bolex Food Technology's stock price is sensitive to their trading actions
• 57% of the business is held by the top 3 shareholders
• Insider ownership in Shanghai Bolex Food Technology is 18%

A look at the shareholders of Shanghai Bolex Food Technology Co., Ltd. (SHSE:603170) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 34% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, institutional investors endured the highest losses last week after market cap fell by CN¥584m. The recent loss, which adds to a one-year loss of 2.6% for stockholders, may not sit well with this group of investors. Also referred to as "smart money", institutions have a lot of sway over how a stock's price moves. As a result, if the downtrend continues, institutions may face pressures to sell Shanghai Bolex Food Technology, which might have negative implications on individual investors.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai Bolex Food Technology.

What Does The Institutional Ownership Tell Us About Shanghai Bolex Food Technology?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Shanghai Bolex Food Technology does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Shanghai Bolex Food Technology's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Shanghai Bolex Food Technology. Our data shows that Genial Flow Asset Management Co.,Ltd. is the largest shareholder with 31% of shares outstanding. Ju Ma is the second largest shareholder owning 18% of common stock, and Hangzhou Baoyu Investment Management Partnership Enterprise (Limited Partnership) holds about 9.0% of the company stock.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 57% stake.

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 Shanghai Bolex Food Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems insiders own a significant proportion of Shanghai Bolex Food Technology Co., Ltd.. Insiders own CN¥1.1b worth of shares in the CN¥6.2b company. 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 32% stake in Shanghai Bolex Food Technology. 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

It seems that Private Companies own 16%, of the Shanghai Bolex Food Technology stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for Shanghai Bolex Food Technology that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.