Retail investors invested in Sichuan Chuanhuan Technology Co.,Ltd. (SZSE:300547) up 16% last week, insiders too were rewarded

Key Insights

• Sichuan Chuanhuan TechnologyLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 25 investors have a majority stake in the company with 46% ownership
• 34% of Sichuan Chuanhuan TechnologyLtd is held by insiders

A look at the shareholders of Sichuan Chuanhuan Technology Co.,Ltd. (SZSE:300547) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Retail investors gained the most after market cap touched CN¥4.3b last week, while insiders who own 34% also benefitted.

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

View our latest analysis for Sichuan Chuanhuan TechnologyLtd

What Does The Institutional Ownership Tell Us About Sichuan Chuanhuan TechnologyLtd?

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.

Sichuan Chuanhuan TechnologyLtd 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. 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 Sichuan Chuanhuan TechnologyLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Sichuan Chuanhuan TechnologyLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Qichao Wen with 14% of shares outstanding. With 11% and 7.3% of the shares outstanding respectively, Jian Wen and Jisheng Wang are the second and third largest shareholders. Jisheng Wang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Sichuan Chuanhuan 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. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of Sichuan Chuanhuan Technology Co.,Ltd.. Insiders own CN¥1.5b worth of shares in the CN¥4.3b company. 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, mostly comprising of individual investors, collectively holds 54% of Sichuan Chuanhuan TechnologyLtd shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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. For example, we've discovered 1 warning sign for Sichuan Chuanhuan TechnologyLtd that you should be aware of before investing here.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.