Autel Intelligent Technology Corp., Ltd.'s (SHSE:688208) most bullish insider, CEO Hongjing Li must be pleased with the recent 10% gain

Key Insights

• Autel Intelligent Technology's significant insider ownership suggests inherent interests in company's expansion
• The top 7 shareholders own 51% of the company
• 21% of Autel Intelligent Technology is held by Institutions

Every investor in Autel Intelligent Technology Corp., Ltd. (SHSE:688208) should be aware of the most powerful shareholder groups. With 42% stake, individual insiders 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).

As a result, insiders scored the highest last week as the company hit CN¥20b market cap following a 10% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Autel Intelligent Technology.

View our latest analysis for Autel Intelligent Technology

What Does The Institutional Ownership Tell Us About Autel Intelligent Technology?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Autel Intelligent Technology 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 Autel Intelligent Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Autel Intelligent Technology. With a 38% stake, CEO Hongjing Li is the largest shareholder. With 3.6% and 3.2% of the shares outstanding respectively, Hong Li and Shenzhen Hongtai Fund Investment Management Co., Ltd. are the second and third largest shareholders.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Autel Intelligent Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Autel Intelligent Technology Corp., Ltd.. Insiders own CN¥8.6b worth of shares in the CN¥20b company. That's quite meaningful. 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-- including retail investors -- own 34% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Autel Intelligent Technology has 2 warning signs we think you should be aware of.

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.