Key Insights

• Significant control over Shenzhen Kingkey Smart Agriculture TimesLtd by private companies implies that the general public has more power to influence management and governance-related decisions
• KINGKEY GROUP CO., LTD. owns 57% of the company
• 24% of Shenzhen Kingkey Smart Agriculture TimesLtd is held by Institutions

Every investor in Shenzhen Kingkey Smart Agriculture Times Co.,Ltd (SZSE:000048) should be aware of the most powerful shareholder groups. With 57% stake, private companies 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).

While institutions, who own 24% shares weren't spared from last week's CN¥371m market cap drop, private companies as a group suffered the maximum losses

Let's take a closer look to see what the different types of shareholders can tell us about Shenzhen Kingkey Smart Agriculture TimesLtd.

What Does The Institutional Ownership Tell Us About Shenzhen Kingkey Smart Agriculture TimesLtd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Shenzhen Kingkey Smart Agriculture TimesLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Shenzhen Kingkey Smart Agriculture TimesLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Shenzhen Kingkey Smart Agriculture TimesLtd is not owned by hedge funds. Our data shows that KINGKEY GROUP CO., LTD. is the largest shareholder with 57% of shares outstanding. This implies that they have majority interest control of the future of the company. The second and third largest shareholders are Qianhai Pengcheng Wanli Capital Management (Shenzhen) Co., Ltd. and Zircon Private Securities Fund Management Hainan Co.,Ltd., with an equal amount of shares to their name at 4.9%.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Shenzhen Kingkey Smart Agriculture TimesLtd

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.

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.

Our data suggests that insiders own under 1% of Shenzhen Kingkey Smart Agriculture Times Co.,Ltd in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CN¥26m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 19% stake in Shenzhen Kingkey Smart Agriculture TimesLtd. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 57%, of the Shenzhen Kingkey Smart Agriculture TimesLtd stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Shenzhen Kingkey Smart Agriculture TimesLtd you should know about.

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.

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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.