Retail investors are SolaX Power Network Technology (Zhejiang) Co., Ltd.'s (SHSE:688717) biggest owners and were hit after market cap dropped CN¥610m

Key Insights

• The considerable ownership by retail investors in SolaX Power Network Technology (Zhejiang) indicates that they collectively have a greater say in management and business strategy
• The top 6 shareholders own 50% of the company
• Insider ownership in SolaX Power Network Technology (Zhejiang) is 35%

A look at the shareholders of SolaX Power Network Technology (Zhejiang) Co., Ltd. (SHSE:688717) can tell us which group is most powerful. With 40% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While the holdings of retail investors took a hit after last week’s 4.8% price drop, insiders with their 35% also suffered.

Let's take a closer look to see what the different types of shareholders can tell us about SolaX Power Network Technology (Zhejiang).

View our latest analysis for SolaX Power Network Technology (Zhejiang)

What Does The Institutional Ownership Tell Us About SolaX Power Network Technology (Zhejiang)?

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 SolaX Power Network Technology (Zhejiang) does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see SolaX Power Network Technology (Zhejiang)'s historic earnings and revenue below, but keep in mind there's always more to the story.

SolaX Power Network Technology (Zhejiang) is not owned by hedge funds. From our data, we infer that the largest shareholder is Xinfu Li (who also holds the title of Senior Key Executive) with 19% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. For context, the second largest shareholder holds about 16% of the shares outstanding, followed by an ownership of 5.5% by the third-largest shareholder.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of SolaX Power Network Technology (Zhejiang)

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.

It seems insiders own a significant proportion of SolaX Power Network Technology (Zhejiang) Co., Ltd.. It has a market capitalization of just CN¥12b, and insiders have CN¥4.2b worth of shares in their own names. That's quite significant. 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 40% stake in SolaX Power Network Technology (Zhejiang). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With an ownership of 5.5%, 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. Be aware that SolaX Power Network Technology (Zhejiang) is showing 2 warning signs in our investment analysis , you should know about...

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.