Zhejiang HangKe Technology Incorporated Company (SHSE:688006) adds CN¥2.5b in market cap and insiders have a 47% stake in that gain

Key Insights

• Significant insider control over Zhejiang HangKe Technology implies vested interests in company growth
• The top 2 shareholders own 66% of the company
• 12% of Zhejiang HangKe Technology is held by Institutions

A look at the shareholders of Zhejiang HangKe Technology Incorporated Company (SHSE:688006) can tell us which group is most powerful. The group holding the most number of shares in the company, around 47% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥2.5b last week.

Let's take a closer look to see what the different types of shareholders can tell us about Zhejiang HangKe Technology.

Check out our latest analysis for Zhejiang HangKe Technology

What Does The Institutional Ownership Tell Us About Zhejiang HangKe Technology?

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.

We can see that Zhejiang HangKe Technology does have institutional investors; and they hold a good portion of the company's stock. 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 Zhejiang HangKe Technology's earnings history below. Of course, the future is what really matters.

Zhejiang HangKe Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Yu Cao with 44% of shares outstanding. Hangzhou Hangke Intelligent Equipment Group Co., Ltd. is the second largest shareholder owning 22% of common stock, and HSBC Jintrust Fund Management Company Limited holds about 3.5% of the company stock. In addition, we found that Pingguang Yu, the CEO has 0.6% of the shares allocated to their name.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 66% stake.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Zhejiang HangKe Technology

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. 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.

Our most recent data indicates that insiders own a reasonable proportion of Zhejiang HangKe Technology Incorporated Company. It has a market capitalization of just CN¥12b, and insiders have CN¥5.6b worth of shares in their own names. That's quite significant. 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

With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhejiang HangKe Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 22%, of the Zhejiang HangKe 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.

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 Zhejiang HangKe Technology is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

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.