BlueSword Intelligent Technology Co.,Ltd.'s (SHSE:688557) most bullish insider, Top Key Executive Yaohua Wu must be pleased with the recent 13% gain

Key Insights

• Insiders appear to have a vested interest in BlueSword Intelligent TechnologyLtd's growth, as seen by their sizeable ownership
• A total of 5 investors have a majority stake in the company with 51% ownership
• Institutions own 17% of BlueSword Intelligent TechnologyLtd

Every investor in BlueSword Intelligent Technology Co.,Ltd. (SHSE:688557) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 40% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit CN¥1.7b market cap following a 13% gain in the stock.

Let's delve deeper into each type of owner of BlueSword Intelligent TechnologyLtd, beginning with the chart below.

Check out our latest analysis for BlueSword Intelligent TechnologyLtd

What Does The Institutional Ownership Tell Us About BlueSword Intelligent TechnologyLtd?

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.

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

Hedge funds don't have many shares in BlueSword Intelligent TechnologyLtd. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In BlueSword Intelligent TechnologyLtd's case, its Top Key Executive, Yaohua Wu, is the largest shareholder, holding 36% of shares outstanding. With 6.1% and 4.5% of the shares outstanding respectively, Jinan Technology Venture Capital Group Co., Ltd. and Fortune Venture Capital Co., Ltd. are the second and third largest shareholders. Furthermore, CEO Xiaoyi Zhang is the owner of 1.3% of the company's shares.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. 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 BlueSword Intelligent TechnologyLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of BlueSword Intelligent Technology Co.,Ltd.. Insiders own CN¥682m worth of shares in the CN¥1.7b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 35% stake in BlueSword Intelligent 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 Equity Ownership

With an ownership of 6.1%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

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. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for BlueSword Intelligent TechnologyLtd you should know about.

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.