share_log

Individual Investors Own 37% of Shanghai Baosight Software Co.,Ltd. (SHSE:600845) Shares but Public Companies Control 49% of the Company

Simply Wall St ·  Nov 3, 2023 20:07

Key Insights

  • Shanghai Baosight SoftwareLtd's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 2 investors have a majority stake in the company with 51% ownership
  • Institutional ownership in Shanghai Baosight SoftwareLtd is 12%

If you want to know who really controls Shanghai Baosight Software Co.,Ltd. (SHSE:600845), then you'll have to look at the makeup of its share registry. With 49% stake, public companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual investors on the other hand have a 37% ownership in the company.

Let's delve deeper into each type of owner of Shanghai Baosight SoftwareLtd, beginning with the chart below.

See our latest analysis for Shanghai Baosight SoftwareLtd

ownership-breakdown
SHSE:600845 Ownership Breakdown November 4th 2023

What Does The Institutional Ownership Tell Us About Shanghai Baosight SoftwareLtd?

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.

We can see that Shanghai Baosight SoftwareLtd 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 Baosight SoftwareLtd's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SHSE:600845 Earnings and Revenue Growth November 4th 2023

Shanghai Baosight SoftwareLtd is not owned by hedge funds. The company's largest shareholder is Baoshan Iron & Steel Co., Ltd., with ownership of 49%. Meanwhile, the second and third largest shareholders, hold 1.7% and 1.0%, of the shares outstanding, respectively.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 51% 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 Baosight SoftwareLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 most recent data indicates that insiders own less than 1% of Shanghai Baosight Software Co.,Ltd.. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own CN¥181m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 37% stake in the company, and hence can't easily be ignored. 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.

Public Company Ownership

It appears to us that public companies own 49% of Shanghai Baosight SoftwareLtd. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shanghai Baosight SoftwareLtd better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

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
    Write a comment