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San Yang Ma (Chongqing) Logistics Co.,Ltd. (SZSE:001317) Insiders, Who Hold 64% of the Firm Would Be Disappointed by the Recent Pullback

Simply Wall St ·  Apr 20 21:22

Key Insights

  • San Yang Ma (Chongqing) LogisticsLtd's significant insider ownership suggests inherent interests in company's expansion
  • 63% of the company is held by a single shareholder (Hongyang Qiu)
  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of San Yang Ma (Chongqing) Logistics Co.,Ltd. (SZSE:001317) can tell us which group is most powerful. The group holding the most number of shares in the company, around 64% to be precise, is individual insiders. 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 17%.

Let's delve deeper into each type of owner of San Yang Ma (Chongqing) LogisticsLtd, beginning with the chart below.

ownership-breakdown
SZSE:001317 Ownership Breakdown April 21st 2024

What Does The Institutional Ownership Tell Us About San Yang Ma (Chongqing) LogisticsLtd?

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.

Less than 5% of San Yang Ma (Chongqing) LogisticsLtd is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

earnings-and-revenue-growth
SZSE:001317 Earnings and Revenue Growth April 21st 2024

San Yang Ma (Chongqing) LogisticsLtd is not owned by hedge funds. The company's largest shareholder is Hongyang Qiu, with ownership of 63%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 2.2% and 1.4% of the shares outstanding respectively, Chongqing Modern Logistics Industry Equity Investment Fund Management Co., Ltd. and Guangxi Jinlan Investment Management Center (Limited Partnership) are the second and third largest shareholders.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of San Yang Ma (Chongqing) LogisticsLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems that insiders own more than half the San Yang Ma (Chongqing) Logistics Co.,Ltd. stock. This gives them a lot of power. Given it has a market cap of CN¥2.0b, that means they have CN¥1.3b worth of shares. 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 32% stake in San Yang Ma (Chongqing) LogisticsLtd. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand San Yang Ma (Chongqing) LogisticsLtd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with San Yang Ma (Chongqing) LogisticsLtd (at least 1 which is a bit concerning) , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

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