Key Insights

• Insiders appear to have a vested interest in Suzhou Recodeal Interconnect SystemLtd's growth, as seen by their sizeable ownership
• A total of 9 investors have a majority stake in the company with 50% ownership
• 20% of Suzhou Recodeal Interconnect SystemLtd is held by Institutions

A look at the shareholders of Suzhou Recodeal Interconnect System Co.,Ltd (SHSE:688800) can tell us which group is most powerful. With 38% 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¥5.0b market cap following a 10% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Suzhou Recodeal Interconnect SystemLtd.

What Does The Institutional Ownership Tell Us About Suzhou Recodeal Interconnect SystemLtd?

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.

Suzhou Recodeal Interconnect SystemLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Suzhou Recodeal Interconnect SystemLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Suzhou Recodeal Interconnect SystemLtd. The company's CEO Shijun Wu is the largest shareholder with 29% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.3% and 3.6%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Bo Huang is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Suzhou Recodeal Interconnect SystemLtd

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Suzhou Recodeal Interconnect System Co.,Ltd. Insiders own CN¥1.9b worth of shares in the CN¥5.0b 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

The general public, who are usually individual investors, hold a 37% stake in Suzhou Recodeal Interconnect SystemLtd. 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.

Private Company Ownership

It seems that Private Companies own 3.6%, of the Suzhou Recodeal Interconnect SystemLtd 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Suzhou Recodeal Interconnect SystemLtd better, we need to consider many other factors. Be aware that Suzhou Recodeal Interconnect SystemLtd is showing 2 warning signs in our investment analysis , and 1 of those is significant...

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.