Insiders are the top stockholders in Kunshan Huguang Auto Harness Co.,Ltd. (SHSE:605333), and the recent 9.3% drop might have disappointed them

Key Insights

• Kunshan Huguang Auto HarnessLtd's significant insider ownership suggests inherent interests in company's expansion
• Sanrong Cheng owns 60% of the company
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

If you want to know who really controls Kunshan Huguang Auto Harness Co.,Ltd. (SHSE:605333), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 76% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, insiders endured the biggest losses as the stock fell by 9.3%.

Let's take a closer look to see what the different types of shareholders can tell us about Kunshan Huguang Auto HarnessLtd.

View our latest analysis for Kunshan Huguang Auto HarnessLtd

What Does The Institutional Ownership Tell Us About Kunshan Huguang Auto HarnessLtd?

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 Kunshan Huguang Auto HarnessLtd. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Kunshan Huguang Auto HarnessLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Kunshan Huguang Auto HarnessLtd. Our data shows that Sanrong Cheng is the largest shareholder with 60% of shares outstanding. This implies that they have majority interest control of the future of the company. With 15% and 2.2% of the shares outstanding respectively, Sung Sung Kim and E Fund Management Co., Ltd. are the second and third largest shareholders. Sung Sung Kim, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Kunshan Huguang Auto HarnessLtd

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

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.

It seems that insiders own more than half the Kunshan Huguang Auto Harness Co.,Ltd. stock. This gives them a lot of power. That means insiders have a very meaningful CN¥11b stake in this CN¥15b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Kunshan Huguang Auto HarnessLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Kunshan Huguang Auto HarnessLtd is showing 1 warning sign in our investment analysis , you should know about...

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.