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Shanghai Golden Bridge Info Tech Co.,Ltd's (SHSE:603918) Stock Price Dropped 9.0% Last Week; Individual Investors Would Not Be Happy

Simply Wall St ·  Sep 19, 2023 20:57

Key Insights

  • Shanghai Golden Bridge Info TechLtd's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 25 investors have a majority stake in the company with 41% ownership
  • 26% of Shanghai Golden Bridge Info TechLtd is held by insiders

If you want to know who really controls Shanghai Golden Bridge Info Tech Co.,Ltd (SHSE:603918), then you'll have to look at the makeup of its share registry. With 59% stake, individual investors 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).

While insiders, who own 26% shares weren't spared from last week's CN¥853m market cap drop, individual investors as a group suffered the maximum losses

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai Golden Bridge Info TechLtd.

See our latest analysis for Shanghai Golden Bridge Info TechLtd

ownership-breakdown
SHSE:603918 Ownership Breakdown September 20th 2023

What Does The Institutional Ownership Tell Us About Shanghai Golden Bridge Info TechLtd?

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.

Shanghai Golden Bridge Info TechLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Shanghai Golden Bridge Info TechLtd, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SHSE:603918 Earnings and Revenue Growth September 20th 2023

Shanghai Golden Bridge Info TechLtd is not owned by hedge funds. Our data shows that Guo Pei Jin is the largest shareholder with 18% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.6% and 4.6%, of the shares outstanding, respectively.

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 some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Shanghai Golden Bridge Info TechLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 Shanghai Golden Bridge Info Tech Co.,Ltd. It is very interesting to see that insiders have a meaningful CN¥2.2b stake in this CN¥8.6b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 59% of Shanghai Golden Bridge Info TechLtd shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Equity Ownership

With a stake of 5.6%, private equity firms could influence the Shanghai Golden Bridge Info TechLtd board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

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 - Shanghai Golden Bridge Info TechLtd has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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