Zhongzhong Science & Technology (Tianjin) Co., Ltd. (SHSE:603135) insiders, who hold 67% of the firm would be disappointed by the recent pullback

Key Insights

• Insiders appear to have a vested interest in Zhongzhong Science & Technology (Tianjin)'s growth, as seen by their sizeable ownership
• 60% of the business is held by the top 2 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Zhongzhong Science & Technology (Tianjin) Co., Ltd. (SHSE:603135) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 67% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 8.1% decline in share price, insiders suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Zhongzhong Science & Technology (Tianjin).

View our latest analysis for Zhongzhong Science & Technology (Tianjin)

What Does The Lack Of Institutional Ownership Tell Us About Zhongzhong Science & Technology (Tianjin)?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Zhongzhong Science & Technology (Tianjin)'s earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Hedge funds don't have many shares in Zhongzhong Science & Technology (Tianjin). Bingbing Ma is currently the largest shareholder, with 48% of shares outstanding. With 12% and 5.6% of the shares outstanding respectively, Fenglan Gu and Guomao Reducer Group Co., Ltd. are the second and third largest shareholders. Additionally, the company's CEO Hongxin Wang directly holds 2.4% of the total shares outstanding.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 60% stake.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Zhongzhong Science & Technology (Tianjin)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 the majority of Zhongzhong Science & Technology (Tianjin) Co., Ltd.. This means they can collectively make decisions for the company. Given it has a market cap of CN¥5.3b, that means they have CN¥3.5b worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhongzhong Science & Technology (Tianjin). 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.

Private Company Ownership

It seems that Private Companies own 13%, of the Zhongzhong Science & Technology (Tianjin) stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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. Be aware that Zhongzhong Science & Technology (Tianjin) is showing 4 warning signs in our investment analysis , and 2 of those can't be ignored...

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.