Qingdao Sentury Tire Co., Ltd.'s (SZSE:002984) market cap increased by CN¥2.1b, insiders receive a 44% cut

Key Insights

• Insiders appear to have a vested interest in Qingdao Sentury Tire's growth, as seen by their sizeable ownership
• A total of 6 investors have a majority stake in the company with 51% ownership
• 14% of Qingdao Sentury Tire is held by Institutions

A look at the shareholders of Qingdao Sentury Tire Co., Ltd. (SZSE:002984) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 44% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥2.1b last week.

In the chart below, we zoom in on the different ownership groups of Qingdao Sentury Tire.

See our latest analysis for Qingdao Sentury Tire

What Does The Institutional Ownership Tell Us About Qingdao Sentury Tire?

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.

Qingdao Sentury Tire 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 Qingdao Sentury Tire, (below). Of course, keep in mind that there are other factors to consider, too.

Qingdao Sentury Tire is not owned by hedge funds. Long Qin is currently the company's largest shareholder with 38% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.0% and 3.0% of the stock. Wenlong Lin, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

We also observed that the top 6 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. 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 Qingdao Sentury Tire

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

Our information suggests that insiders maintain a significant holding in Qingdao Sentury Tire Co., Ltd.. It has a market capitalization of just CN¥25b, and insiders have CN¥11b worth of shares in their own names. That's quite significant. 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 35% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Qingdao Sentury Tire. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 8.0%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Qingdao Sentury Tire better, we need to consider many other factors. For example, we've discovered 2 warning signs for Qingdao Sentury Tire that you should be aware of before investing here.

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.

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