The big shareholder groups in Kunshan GuoLi Electronic Technology Co., Ltd. (SHSE:688103) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don't tell me what you think, tell me what you have in your portfolio.
Kunshan GuoLi Electronic Technology is not a large company by global standards. It has a market capitalization of CN¥4.7b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Kunshan GuoLi Electronic Technology.
Check out our latest analysis for Kunshan GuoLi Electronic TechnologySHSE:688103 Ownership Breakdown June 8th 2022
What Does The Institutional Ownership Tell Us About Kunshan GuoLi Electronic Technology?
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.
As you can see, institutional investors have a fair amount of stake in Kunshan GuoLi Electronic 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. 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 Kunshan GuoLi Electronic Technology, (below). Of course, keep in mind that there are other factors to consider, too.SHSE:688103 Earnings and Revenue Growth June 8th 2022
Hedge funds don't have many shares in Kunshan GuoLi Electronic Technology. The company's largest shareholder is Jianping Yin, with ownership of 28%. Fosun International Holdings Ltd. is the second largest shareholder owning 6.5% of common stock, and Kunshan Guoyi Investment Management Center (Limited Partnership) holds about 6.1% of the company stock.
We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Kunshan GuoLi Electronic Technology
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that insiders maintain a significant holding in Kunshan GuoLi Electronic Technology Co., Ltd.. Insiders own CN¥1.6b worth of shares in the CN¥4.7b 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
With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Kunshan GuoLi Electronic Technology. 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 13%, of the Kunshan GuoLi Electronic Technology stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 4 warning signs for Kunshan GuoLi Electronic Technology (1 is concerning) that you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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