Cinderson Tech (Suzhou) Co., Ltd. (SHSE:603344) Senior Key Executive Yunfang Zhu's holdings dropped 7.5% in value as a result of the recent pullback

Key Insights

• Insiders appear to have a vested interest in Cinderson Tech (Suzhou)'s growth, as seen by their sizeable ownership
• 70% of the company is held by a single shareholder (Yunfang Zhu)
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Cinderson Tech (Suzhou) Co., Ltd. (SHSE:603344) should be aware of the most powerful shareholder groups. With 70% 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 market cap fell to CN¥4.8b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about Cinderson Tech (Suzhou).

View our latest analysis for Cinderson Tech (Suzhou)

What Does The Institutional Ownership Tell Us About Cinderson Tech (Suzhou)?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Since institutions own only a small portion of Cinderson Tech (Suzhou), many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Cinderson Tech (Suzhou) is not owned by hedge funds. From our data, we infer that the largest shareholder is Yunfang Zhu (who also holds the title of Senior Key Executive) with 70% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. With 2.8% and 2.6% of the shares outstanding respectively, Shenzhen Dachen Caizhi Venture Capital Management Co., Ltd. and Ningbo Qijing Business Consulting Partnership (Limited Partnership) are the second and third largest shareholders.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Cinderson Tech (Suzhou)

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. 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.

It seems that insiders own more than half the Cinderson Tech (Suzhou) Co., Ltd. stock. This gives them a lot of power. So they have a CN¥3.3b stake in this CN¥4.8b 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

The general public, who are usually individual investors, hold a 25% stake in Cinderson Tech (Suzhou). 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.

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. To that end, you should learn about the 2 warning signs we've spotted with Cinderson Tech (Suzhou) (including 1 which can't be ignored) .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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