Public companies are ShenZhen RoadRover Technology Co.,Ltd's (SZSE:002813) biggest owners and were hit after market cap dropped CN¥377m

Key Insights

• ShenZhen RoadRover TechnologyLtd's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 54% of the company is held by a single shareholder (Zoomlion Heavy Industry Science and Technology Co., Ltd.)
• 14% of ShenZhen RoadRover TechnologyLtd is held by insiders

A look at the shareholders of ShenZhen RoadRover Technology Co.,Ltd (SZSE:002813) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 54% ownership. 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, public companies as a group endured the highest losses last week after market cap fell by CN¥377m.

Let's take a closer look to see what the different types of shareholders can tell us about ShenZhen RoadRover TechnologyLtd.

See our latest analysis for ShenZhen RoadRover TechnologyLtd

What Does The Institutional Ownership Tell Us About ShenZhen RoadRover TechnologyLtd?

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 ShenZhen RoadRover TechnologyLtd. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see ShenZhen RoadRover TechnologyLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in ShenZhen RoadRover TechnologyLtd. Looking at our data, we can see that the largest shareholder is Zoomlion Heavy Industry Science and Technology Co., Ltd. with 54% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. In comparison, the second and third largest shareholders hold about 12% and 4.7% of the stock.

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. 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 ShenZhen RoadRover TechnologyLtd

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.

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 insiders own a significant proportion of ShenZhen RoadRover Technology Co.,Ltd. Insiders have a CN¥426m stake in this CN¥3.1b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 25% 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.

Public Company Ownership

It appears to us that public companies own 54% of ShenZhen RoadRover TechnologyLtd. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand ShenZhen RoadRover TechnologyLtd better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for ShenZhen RoadRover TechnologyLtd you should be aware of.

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.