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Retail Investors Are Shanghai Golden Bridge Info Tech Co.,Ltd's (SHSE:603918) Biggest Owners and Were Hit After Market Cap Dropped CN¥626m

Simply Wall St ·  Jan 7 23:25

Key Insights

  • Shanghai Golden Bridge Info TechLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • The top 25 shareholders own 42% of the company
  • Insiders own 26% of Shanghai Golden Bridge Info TechLtd

Every investor in Shanghai Golden Bridge Info Tech Co.,Ltd (SHSE:603918) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 58% to be precise, is retail investors. 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% came under pressure after market cap dropped to CN¥6.2b last week,retail investors took the most losses.

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

Check out our latest analysis for Shanghai Golden Bridge Info TechLtd

ownership-breakdown
SHSE:603918 Ownership Breakdown January 8th 2024

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.

We can see that Shanghai Golden Bridge Info TechLtd 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 Golden Bridge Info TechLtd's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SHSE:603918 Earnings and Revenue Growth January 8th 2024

Shanghai Golden Bridge Info TechLtd is not owned by hedge funds. The company's largest shareholder is Guo Pei Jin, with ownership of 18%. With 5.1% and 4.6% of the shares outstanding respectively, Shanghai Yunxin Venture Capital Co., Ltd. and Shanghai Tuopai Asset Management Co., Ltd. are the second and third largest shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Shanghai Golden Bridge Info TechLtd

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.

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.

It seems insiders own a significant proportion of Shanghai Golden Bridge Info Tech Co.,Ltd. It has a market capitalization of just CN¥6.2b, and insiders have CN¥1.6b worth of shares in their own names. 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 -- including retail investors -- own 58% of Shanghai Golden Bridge Info TechLtd. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Equity Ownership

With an ownership of 5.1%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Shanghai Golden Bridge Info TechLtd better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Shanghai Golden Bridge Info TechLtd you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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