Shenzhen Kedali Industry Co., Ltd. (SZSE:002850) insiders, who hold 38% of the firm would be disappointed by the recent pullback

Key Insights

• Significant insider control over Shenzhen Kedali Industry implies vested interests in company growth
• A total of 7 investors have a majority stake in the company with 51% ownership
• Institutions own 26% of Shenzhen Kedali Industry

To get a sense of who is truly in control of Shenzhen Kedali Industry Co., Ltd. (SZSE:002850), it is important to understand the ownership structure of the business. With 38% 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 as a group endured the highest losses after market cap fell by CN¥1.4b.

In the chart below, we zoom in on the different ownership groups of Shenzhen Kedali Industry.

View our latest analysis for Shenzhen Kedali Industry

What Does The Institutional Ownership Tell Us About Shenzhen Kedali Industry?

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.

Shenzhen Kedali Industry already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Shenzhen Kedali Industry, (below). Of course, keep in mind that there are other factors to consider, too.

Shenzhen Kedali Industry is not owned by hedge funds. Jian Li Li is currently the largest shareholder, with 29% of shares outstanding. With 9.2% and 4.2% of the shares outstanding respectively, Jian Ju Li and Quanguo Fund Management Co., Ltd. are the second and third largest shareholders.

We did some more digging and found that 7 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Shenzhen Kedali Industry

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Kedali Industry Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥7.7b stake in this CN¥20b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 33% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shenzhen Kedali Industry. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shenzhen Kedali Industry better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Shenzhen Kedali Industry .

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.