Individual investors in Create Technology & Science Co.,Ltd. (SZSE:000551) are its biggest bettors, and their bets paid off as stock gained 10% last week

Key Insights

• The considerable ownership by individual investors in Create Technology & ScienceLtd indicates that they collectively have a greater say in management and business strategy
• The top 13 shareholders own 50% of the company
• Institutional ownership in Create Technology & ScienceLtd is 11%

If you want to know who really controls Create Technology & Science Co.,Ltd. (SZSE:000551), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 48% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, individual investors collectively scored the highest last week as the company hit CN¥3.8b market cap following a 10% gain in the stock.

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

See our latest analysis for Create Technology & ScienceLtd

What Does The Institutional Ownership Tell Us About Create Technology & ScienceLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Create Technology & ScienceLtd. 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. 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 Create Technology & ScienceLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Create Technology & ScienceLtd. Suzhou Create Investment Development Group Co Ltd is currently the largest shareholder, with 36% of shares outstanding. China Galaxy Securities Co., Ltd. is the second largest shareholder owning 2.0% of common stock, and Bo Zhang holds about 1.8% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Create Technology & ScienceLtd

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We can report that insiders do own shares in Create Technology & Science Co.,Ltd.. In their own names, insiders own CN¥75m worth of stock in the CN¥3.8b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 48% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Create Technology & ScienceLtd. 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

We can see that Private Companies own 37%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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. To that end, you should be aware of the 1 warning sign we've spotted with Create Technology & ScienceLtd .

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.