Insiders with their considerable ownership were the key benefactors as Changzhou Langbo Sealing Technologies Co.,Ltd. (SHSE:603655) touches CN¥2.7b market cap

Key Insights

• Significant insider control over Changzhou Langbo Sealing TechnologiesLtd implies vested interests in company growth
• The top 2 shareholders own 54% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Changzhou Langbo Sealing Technologies Co.,Ltd. (SHSE:603655), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 61% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit CN¥2.7b market cap following a 22% gain in the stock.

Let's delve deeper into each type of owner of Changzhou Langbo Sealing TechnologiesLtd, beginning with the chart below.

View our latest analysis for Changzhou Langbo Sealing TechnologiesLtd

What Does The Institutional Ownership Tell Us About Changzhou Langbo Sealing TechnologiesLtd?

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.

Institutions have a very small stake in Changzhou Langbo Sealing TechnologiesLtd. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. 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.

Hedge funds don't have many shares in Changzhou Langbo Sealing TechnologiesLtd. Looking at our data, we can see that the largest shareholder is Jianguo Qi with 43% of shares outstanding. With 11% and 7.6% of the shares outstanding respectively, Xiaofeng Fan and Changzhou Jintan Juntai Investment Consulting Co., Ltd. are the second and third largest shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Changzhou Langbo Sealing TechnologiesLtd

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.

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 most recent data indicates that insiders own the majority of Changzhou Langbo Sealing Technologies Co.,Ltd.. This means they can collectively make decisions for the company. Given it has a market cap of CN¥2.7b, that means they have CN¥1.6b 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 30% stake in Changzhou Langbo Sealing TechnologiesLtd. 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

Our data indicates that Private Companies hold 7.6%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Changzhou Langbo Sealing TechnologiesLtd (of which 1 is concerning!) you should know about.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.