Insiders the biggest winners as Quick Intelligent Equipment Co.,Ltd.'s (SHSE:603203) market cap rises to CN¥5.9b

Key Insights

• Quick Intelligent EquipmentLtd's significant insider ownership suggests inherent interests in company's expansion
• 55% of the business is held by the top 2 shareholders
• 10% of Quick Intelligent EquipmentLtd is held by Institutions

Every investor in Quick Intelligent Equipment Co.,Ltd. (SHSE:603203) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 34% ownership. 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¥5.9b market cap following a 7.1% gain in the stock.

Let's delve deeper into each type of owner of Quick Intelligent EquipmentLtd, beginning with the chart below.

See our latest analysis for Quick Intelligent EquipmentLtd

What Does The Institutional Ownership Tell Us About Quick Intelligent EquipmentLtd?

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.

We can see that Quick Intelligent EquipmentLtd does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Quick Intelligent EquipmentLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Quick Intelligent EquipmentLtd is not owned by hedge funds. Changzhou Fuyun Investment Consulting Co., Ltd. is currently the largest shareholder, with 30% of shares outstanding. Chun Jin is the second largest shareholder owning 25% of common stock, and Guo Qiang Qi holds about 8.5% of the company stock. Guo Qiang Qi, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Quick Intelligent EquipmentLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Quick Intelligent Equipment Co.,Ltd.. Insiders own CN¥2.0b worth of shares in the CN¥5.9b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Quick Intelligent EquipmentLtd. 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 32%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Quick Intelligent EquipmentLtd better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Quick Intelligent EquipmentLtd (including 1 which is a bit concerning) .

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.