Retail investors invested in PNC Process Systems Co., Ltd. (SHSE:603690) up 4.8% last week, insiders too were rewarded

Key Insights

• The considerable ownership by retail investors in PNC Process Systems indicates that they collectively have a greater say in management and business strategy
• 44% of the business is held by the top 25 shareholders
• 34% of PNC Process Systems is held by insiders

Every investor in PNC Process Systems Co., Ltd. (SHSE:603690) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While retail investors were the group that reaped the most benefits after last week’s 4.8% price gain, insiders also received a 34% cut.

In the chart below, we zoom in on the different ownership groups of PNC Process Systems.

View our latest analysis for PNC Process Systems

What Does The Institutional Ownership Tell Us About PNC Process Systems?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

PNC Process Systems already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 PNC Process Systems' earnings history below. Of course, the future is what really matters.

PNC Process Systems is not owned by hedge funds. The company's CEO Yuan Jiang is the largest shareholder with 27% of shares outstanding. With 3.3% and 2.5% of the shares outstanding respectively, Long Ying Lu and Hao Zhao are the second and third largest shareholders.

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.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of PNC Process Systems

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in PNC Process Systems Co., Ltd.. Insiders own CN¥3.4b worth of shares in the CN¥10.0b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public -- including retail investors -- own 56% of PNC Process Systems. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

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. Be aware that PNC Process Systems is showing 3 warning signs in our investment analysis , and 1 of those is significant...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.