Following recent decline, Suzhou Secote Precision Electronic Co.,LTD's (SHSE:603283) top shareholder CEO Feng Sun sees holdings value drop by 5.9%

Key Insights

• Insiders appear to have a vested interest in Suzhou Secote Precision ElectronicLTD's growth, as seen by their sizeable ownership
• 51% of the business is held by the top 3 shareholders
• 34% of Suzhou Secote Precision ElectronicLTD is held by Institutions

A look at the shareholders of Suzhou Secote Precision Electronic Co.,LTD (SHSE:603283) can tell us which group is most powerful. With 44% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders as a group endured the highest losses after market cap fell by CN¥749m.

Let's delve deeper into each type of owner of Suzhou Secote Precision ElectronicLTD, beginning with the chart below.

Check out our latest analysis for Suzhou Secote Precision ElectronicLTD

What Does The Institutional Ownership Tell Us About Suzhou Secote Precision ElectronicLTD?

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 Suzhou Secote Precision ElectronicLTD does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Suzhou Secote Precision ElectronicLTD's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Suzhou Secote Precision ElectronicLTD. Looking at our data, we can see that the largest shareholder is the CEO Feng Sun with 21% of shares outstanding. Hui Zeng is the second largest shareholder owning 21% of common stock, and Zhonggeng Fund Management Co., Ltd. holds about 9.6% of the company stock.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Suzhou Secote Precision ElectronicLTD

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 a reasonable proportion of Suzhou Secote Precision Electronic Co.,LTD. Insiders own CN¥5.2b worth of shares in the CN¥12b 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

With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Suzhou Secote Precision ElectronicLTD. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Suzhou Secote Precision ElectronicLTD better, we need to consider many other factors. Be aware that Suzhou Secote Precision ElectronicLTD is showing 1 warning sign in our investment analysis , you should know about...

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.