Shaanxi Baoguang Vacuum Electric Device Co., Ltd.'s (SHSE:600379) market cap surged CN¥294m last week, retail investors who have a lot riding on the company were rewarded

Key Insights

• The considerable ownership by retail investors in Shaanxi Baoguang Vacuum Electric Device indicates that they collectively have a greater say in management and business strategy
• The top 4 shareholders own 51% of the company
• 21% of Shaanxi Baoguang Vacuum Electric Device is held by Institutions

If you want to know who really controls Shaanxi Baoguang Vacuum Electric Device Co., Ltd. (SHSE:600379), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 47% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, retail investors benefitted the most after the company's market cap rose by CN¥294m last week.

In the chart below, we zoom in on the different ownership groups of Shaanxi Baoguang Vacuum Electric Device.

See our latest analysis for Shaanxi Baoguang Vacuum Electric Device

What Does The Institutional Ownership Tell Us About Shaanxi Baoguang Vacuum Electric Device?

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.

As you can see, institutional investors have a fair amount of stake in Shaanxi Baoguang Vacuum Electric Device. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Shaanxi Baoguang Vacuum Electric Device's earnings history below. Of course, the future is what really matters.

Shaanxi Baoguang Vacuum Electric Device is not owned by hedge funds. The company's largest shareholder is China XD Group Corporation, with ownership of 30%. For context, the second largest shareholder holds about 14% of the shares outstanding, followed by an ownership of 4.5% by the third-largest shareholder.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 Shaanxi Baoguang Vacuum Electric Device

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

We can report that insiders do own shares in Shaanxi Baoguang Vacuum Electric Device Co., Ltd.. As individuals, the insiders collectively own CN¥61m worth of the CN¥3.0b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shaanxi Baoguang Vacuum Electric Device. 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 30%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Shaanxi Baoguang Vacuum Electric Device that 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.