Key Insights

• The considerable ownership by retail investors in SDIC Intelligence Xiamen Information indicates that they collectively have a greater say in management and business strategy
• The top 7 shareholders own 50% of the company
• Insider ownership in SDIC Intelligence Xiamen Information is 29%

To get a sense of who is truly in control of SDIC Intelligence Xiamen Information Co., Ltd. (SZSE:300188), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 41% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While insiders who own 29% came under pressure after market cap dropped to CN¥11b 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 SDIC Intelligence Xiamen Information.

Check out our latest analysis for SDIC Intelligence Xiamen Information

What Does The Institutional Ownership Tell Us About SDIC Intelligence Xiamen Information?

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 SDIC Intelligence Xiamen Information 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. 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 SDIC Intelligence Xiamen Information, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in SDIC Intelligence Xiamen Information. State Development & Investment Corp., Ltd. is currently the largest shareholder, with 21% of shares outstanding. With 15% and 7.5% of the shares outstanding respectively, Yongfang Guo and Guolin Li are the second and third largest shareholders. Guolin Li, who is the third-largest shareholder, also happens to hold the title of Member of Corporate Board.

We did some more digging and found that 7 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of SDIC Intelligence Xiamen Information

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

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 SDIC Intelligence Xiamen Information Co., Ltd.. It has a market capitalization of just CN¥11b, and insiders have CN¥3.4b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 41% stake in SDIC Intelligence Xiamen Information. 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

Our data indicates that Private Companies hold 21%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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.

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.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

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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.