ShenZhen RoadRover Technology Co.,Ltd's (SZSE:002813) last week's 11% decline must have disappointed public companies who have a significant stake

Key Insights

• The considerable ownership by public companies in ShenZhen RoadRover TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• Zoomlion Heavy Industry Science and Technology Co., Ltd. owns 54% of the company
• Insider ownership in ShenZhen RoadRover TechnologyLtd is 14%

Every investor in ShenZhen RoadRover Technology Co.,Ltd (SZSE:002813) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies as a group endured the highest losses last week after market cap fell by CN¥360m.

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

Check out our latest analysis for ShenZhen RoadRover TechnologyLtd

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

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that ShenZhen RoadRover TechnologyLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 ShenZhen RoadRover TechnologyLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in ShenZhen RoadRover TechnologyLtd. Zoomlion Heavy Industry Science and Technology Co., Ltd. is currently the largest shareholder, with 54% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 12% and 4.7% of the shares outstanding respectively, Xiu Mei Guo and Wuhu Hongwei Co-Stone Investment Fund Management Partnership Enterprise (Limited Partnership) are the second and third largest shareholders.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of ShenZhen RoadRover TechnologyLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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.

It seems insiders own a significant proportion of ShenZhen RoadRover Technology Co.,Ltd. Insiders own CN¥382m worth of shares in the CN¥2.8b company. 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 26% stake in ShenZhen RoadRover TechnologyLtd. 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

Public companies currently own 54% of ShenZhen RoadRover TechnologyLtd stock. 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:

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.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.