Retail investors among Ningbo Heli Technology Co., Ltd.'s (SHSE:603917) largest stockholders and were hit after last week's 14% price drop

Key Insights

• Significant control over Ningbo Heli Technology by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 16 shareholders own 50% of the company
• 38% of Ningbo Heli Technology is held by insiders

If you want to know who really controls Ningbo Heli Technology Co., Ltd. (SHSE:603917), then you'll have to look at the makeup of its share registry. With 49% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 14% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 38% stock also took a hit.

In the chart below, we zoom in on the different ownership groups of Ningbo Heli Technology.

See our latest analysis for Ningbo Heli Technology

What Does The Institutional Ownership Tell Us About Ningbo Heli Technology?

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.

As you can see, institutional investors have a fair amount of stake in Ningbo Heli Technology. 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. 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 Ningbo Heli Technology's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Ningbo Heli Technology. The company's CEO Liangcai Shi is the largest shareholder with 9.0% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.0% and 6.2%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 16 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Ningbo Heli Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 insiders own a significant proportion of Ningbo Heli Technology Co., Ltd.. It has a market capitalization of just CN¥2.5b, and insiders have CN¥948m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 49% stake in Ningbo Heli Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Ningbo Heli Technology better, we need to consider many other factors. Be aware that Ningbo Heli Technology is showing 5 warning signs in our investment analysis , and 2 of those make us uncomfortable...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.