Ningbo Sanxing Medical Electric Co.,Ltd. (SHSE:601567) stock most popular amongst private companies who own 32%, while individual investors hold 25%

Key Insights

• Significant control over Ningbo Sanxing Medical ElectricLtd by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 4 shareholders own 53% of the company
• Insiders own 24% of Ningbo Sanxing Medical ElectricLtd

A look at the shareholders of Ningbo Sanxing Medical Electric Co.,Ltd. (SHSE:601567) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 32% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors, on the other hand, account for 25% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of Ningbo Sanxing Medical ElectricLtd.

Check out our latest analysis for Ningbo Sanxing Medical ElectricLtd

What Does The Institutional Ownership Tell Us About Ningbo Sanxing Medical ElectricLtd?

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.

Ningbo Sanxing Medical ElectricLtd 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. 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 Ningbo Sanxing Medical ElectricLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Ningbo Sanxing Medical ElectricLtd is not owned by hedge funds. Our data shows that AUX Group Co.Ltd is the largest shareholder with 32% of shares outstanding. In comparison, the second and third largest shareholders hold about 13% and 4.2% of the stock.

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.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Ningbo Sanxing Medical ElectricLtd

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. 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 Ningbo Sanxing Medical Electric Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥9.5b stake in this CN¥40b business. 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

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ningbo Sanxing Medical ElectricLtd. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 32%, of the shares on issue. 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:

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. Take risks for example - Ningbo Sanxing Medical ElectricLtd has 1 warning sign we think you should be aware of.

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.

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