Private companies who hold 45% of Bozhon Precision Industry Technology Co.,Ltd. (SHSE:688097) gained 5.5%, insiders profited as well

Key Insights

• The considerable ownership by private companies in Bozhon Precision Industry TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• A total of 2 investors have a majority stake in the company with 64% ownership
• 29% of Bozhon Precision Industry TechnologyLtd is held by insiders

A look at the shareholders of Bozhon Precision Industry Technology Co.,Ltd. (SHSE:688097) can tell us which group is most powerful. The group holding the most number of shares in the company, around 45% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 5.5% increase in the stock price last week, private companies profited the most, but insiders who own 29% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Bozhon Precision Industry TechnologyLtd, beginning with the chart below.

Check out our latest analysis for Bozhon Precision Industry TechnologyLtd

What Does The Institutional Ownership Tell Us About Bozhon Precision Industry TechnologyLtd?

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.

We can see that Bozhon Precision Industry TechnologyLtd 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 Bozhon Precision Industry TechnologyLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Bozhon Precision Industry TechnologyLtd. The company's largest shareholder is Suzhou Zhong'er Equity Investment Partnership (Limited Partnership), with ownership of 35%. Shaolin Lu is the second largest shareholder owning 29% of common stock, and Suzhou Zhongyi Investment Management Partnership Enterprise (Limited Partnership) holds about 2.4% of the company stock. Shaolin Lu, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

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 64% stake.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Bozhon Precision Industry TechnologyLtd

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.

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 most recent data indicates that insiders own a reasonable proportion of Bozhon Precision Industry Technology Co.,Ltd.. Insiders own CN¥2.9b worth of shares in the CN¥9.8b company. That's quite meaningful. 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 12% stake in Bozhon Precision Industry TechnologyLtd. 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

Our data indicates that Private Companies hold 45%, of the company's shares. 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 Bozhon Precision Industry TechnologyLtd better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Bozhon Precision Industry TechnologyLtd you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

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