Zhuhai Enpower Electric Co.,Ltd.'s (SZSE:300681) market cap up CN¥629m last week, benefiting both individual investors who own 50% as well as insiders

Key Insights

• Zhuhai Enpower ElectricLtd's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 50% of the business is held by the top 13 shareholders
• 42% of Zhuhai Enpower ElectricLtd is held by insiders

If you want to know who really controls Zhuhai Enpower Electric Co.,Ltd. (SZSE:300681), then you'll have to look at the makeup of its share registry. With 50% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 9.3% increase in the stock price last week, individual investors profited the most, but insiders who own 42% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Zhuhai Enpower ElectricLtd.

Check out our latest analysis for Zhuhai Enpower ElectricLtd

What Does The Institutional Ownership Tell Us About Zhuhai Enpower ElectricLtd?

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.

Since institutions own only a small portion of Zhuhai Enpower ElectricLtd, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Hedge funds don't have many shares in Zhuhai Enpower ElectricLtd. Guibin Jiang is currently the company's largest shareholder with 28% of shares outstanding. Hongyu Li is the second largest shareholder owning 8.3% of common stock, and Biao Wei holds about 4.2% of the company stock. Note that the second and third-largest shareholders are also Senior Key Executive and Member of the Board of Directors, respectively, meaning that the company's top shareholders are insiders.

A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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

Insider Ownership Of Zhuhai Enpower ElectricLtd

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.

Our information suggests that insiders maintain a significant holding in Zhuhai Enpower Electric Co.,Ltd.. Insiders own CN¥3.2b worth of shares in the CN¥7.4b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 50% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhuhai Enpower ElectricLtd. 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 Zhuhai Enpower ElectricLtd better, we need to consider many other factors. Take risks for example - Zhuhai Enpower ElectricLtd has 2 warning signs we think you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.