The recent 14% gain must have brightened CEO Wenqiang Sun's week, Qingdao Hi-Tech Moulds & Plastics Technology Co., Ltd.'s (SZSE:301022) most bullish insider

Key Insights

• Insiders appear to have a vested interest in Qingdao Hi-Tech Moulds & Plastics Technology's growth, as seen by their sizeable ownership
• A total of 3 investors have a majority stake in the company with 54% ownership
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Qingdao Hi-Tech Moulds & Plastics Technology Co., Ltd. (SZSE:301022) should be aware of the most powerful shareholder groups. With 62% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit CN¥1.8b market cap following a 14% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Qingdao Hi-Tech Moulds & Plastics Technology.

See our latest analysis for Qingdao Hi-Tech Moulds & Plastics Technology

What Does The Institutional Ownership Tell Us About Qingdao Hi-Tech Moulds & Plastics Technology?

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.

Less than 5% of Qingdao Hi-Tech Moulds & Plastics Technology is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Qingdao Hi-Tech Moulds & Plastics Technology is not owned by hedge funds. The company's CEO Wenqiang Sun is the largest shareholder with 31% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 17% and 5.5%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Jixue Wang is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Qingdao Hi-Tech Moulds & Plastics Technology

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 most recent data indicates that insiders own the majority of Qingdao Hi-Tech Moulds & Plastics Technology Co., Ltd.. This means they can collectively make decisions for the company. That means they own CN¥1.1b worth of shares in the CN¥1.8b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 33% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Qingdao Hi-Tech Moulds & Plastics Technology better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 5 warning signs with Qingdao Hi-Tech Moulds & Plastics Technology (at least 3 which shouldn't be ignored) , and understanding them should be part of your investment process.

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.

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