CEO Jiandong Ke, Keli Sensing Technology (Ningbo) Co.,Ltd.'s (SHSE:603662) largest shareholder sees value of holdings go down 6.9% after recent drop

Key Insights

• Significant insider control over Keli Sensing Technology (Ningbo)Ltd implies vested interests in company growth
• The top 2 shareholders own 52% of the company
• Institutional ownership in Keli Sensing Technology (Ningbo)Ltd is 12%

If you want to know who really controls Keli Sensing Technology (Ningbo) Co.,Ltd. (SHSE:603662), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 46% 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 6.9% decline in share price, insiders suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Keli Sensing Technology (Ningbo)Ltd.

View our latest analysis for Keli Sensing Technology (Ningbo)Ltd

What Does The Institutional Ownership Tell Us About Keli Sensing Technology (Ningbo)Ltd?

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.

As you can see, institutional investors have a fair amount of stake in Keli Sensing Technology (Ningbo)Ltd. 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. 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 Keli Sensing Technology (Ningbo)Ltd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Keli Sensing Technology (Ningbo)Ltd. Looking at our data, we can see that the largest shareholder is the CEO Jiandong Ke with 45% of shares outstanding. With 6.9% and 1.8% of the shares outstanding respectively, Ningbo Sen Na Investment Co., Ltd. and National Council for Social Security Fund are the second and third largest shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Keli Sensing Technology (Ningbo)Ltd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Keli Sensing Technology (Ningbo) Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥10.0b stake in this CN¥21b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 33% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Keli Sensing Technology (Ningbo)Ltd. 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.

Private Company Ownership

It seems that Private Companies own 8.1%, of the Keli Sensing Technology (Ningbo)Ltd stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Keli Sensing Technology (Ningbo)Ltd better, we need to consider many other factors. For instance, we've identified 2 warning signs for Keli Sensing Technology (Ningbo)Ltd (1 can't be ignored) that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.