Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology Co., Ltd.'s (SHSE:603300) 3.9% loss last week hit both individual investors who own 57% as well as institutions

Key Insights

• Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 43% of the business is held by the top 25 shareholders
• 17% of Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology is held by Institutions

A look at the shareholders of Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology Co., Ltd. (SHSE:603300) can tell us which group is most powerful. With 57% stake, retail investors 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).

While institutions, who own 17% shares weren’t spared from last week’s CN¥432m market cap drop, retail investors as a group suffered the maximum losses

Let's take a closer look to see what the different types of shareholders can tell us about Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology.

View our latest analysis for Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology

What Does The Institutional Ownership Tell Us About Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology?

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.

Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology 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. 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 Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology. Our data shows that Hainan Development HoldingsNanhai Co., Ltd. is the largest shareholder with 14% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.0% and 4.9% of the stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology

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.

We can report that insiders do own shares in Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology Co., Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥948m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 57% of Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 3.2%, of the Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

Public companies currently own 14% of Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology better, we need to consider many other factors. For instance, we've identified 2 warning signs for Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology (1 is significant) that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.