The Recent CN¥396m Market Cap Decrease Is Likely to Have Disappointed Insiders Invested in Keshun Waterproof Technolgies Co.,Ltd. (SZSE:300737)

Simply Wall St · Dec 10, 2023 20:08

Key Insights

Significant insider control over Keshun Waterproof TechnolgiesLtd implies vested interests in company growth
A total of 2 investors have a majority stake in the company with 52% ownership
20% of Keshun Waterproof TechnolgiesLtd is held by Institutions

Every investor in Keshun Waterproof Technolgies Co.,Ltd. (SZSE:300737) should be aware of the most powerful shareholder groups. With 47% 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).

And last week, insiders endured the biggest losses as the stock fell by 5.1%.

Let's take a closer look to see what the different types of shareholders can tell us about Keshun Waterproof TechnolgiesLtd.

See our latest analysis for Keshun Waterproof TechnolgiesLtd

ownership-breakdown — SZSE:300737 Ownership Breakdown December 11th 2023

What Does The Institutional Ownership Tell Us About Keshun Waterproof TechnolgiesLtd?

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.

We can see that Keshun Waterproof TechnolgiesLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Keshun Waterproof TechnolgiesLtd's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — SZSE:300737 Earnings and Revenue Growth December 11th 2023

We note that hedge funds don't have a meaningful investment in Keshun Waterproof TechnolgiesLtd. The company's largest shareholder is Weizhong Chen, with ownership of 45%. Meanwhile, the second and third largest shareholders, hold 7.5% and 2.8%, of the shares outstanding, respectively. Furthermore, CEO Yong Fang is the owner of 1.0% of the company's shares.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Keshun Waterproof TechnolgiesLtd

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 Keshun Waterproof Technolgies Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥3.5b stake in this CN¥7.4b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 33% stake in Keshun Waterproof TechnolgiesLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Keshun Waterproof TechnolgiesLtd , and understanding them should be part of your investment process.

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.

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.