Key Insights

• Insiders appear to have a vested interest in Shijiazhuang Shangtai Technology's growth, as seen by their sizeable ownership
• A total of 3 investors have a majority stake in the company with 52% ownership
• 14% of Shijiazhuang Shangtai Technology is held by Institutions

If you want to know who really controls Shijiazhuang Shangtai Technology Co., Ltd. (SZSE:001301), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 42% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥600m last week.

In the chart below, we zoom in on the different ownership groups of Shijiazhuang Shangtai Technology.

What Does The Institutional Ownership Tell Us About Shijiazhuang Shangtai 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.

As you can see, institutional investors have a fair amount of stake in Shijiazhuang Shangtai Technology. 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. 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 Shijiazhuang Shangtai 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 Shijiazhuang Shangtai Technology. The company's CEO Yongyue Ouyang is the largest shareholder with 37% of shares outstanding. Ningbo Meishan Bonded Port Area Chendao Investment Partnership Enterprise (L.P.) is the second largest shareholder owning 10% of common stock, and CMB International Capital Management (Shenzhen) Co, Ltd. holds about 5.5% of the company stock.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Shijiazhuang Shangtai 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. 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 maintain a significant holding in Shijiazhuang Shangtai Technology Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥3.7b stake in this CN¥8.9b 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

The general public, who are usually individual investors, hold a 28% stake in Shijiazhuang Shangtai 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 Equity Ownership

With a stake of 16%, private equity firms could influence the Shijiazhuang Shangtai Technology board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Shijiazhuang Shangtai Technology has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.