Individual investors who hold 56% of Zhongshan Broad-Ocean Motor Co., Ltd. (SZSE:002249) gained 4.9%, insiders profited as well

Key Insights

• The considerable ownership by individual investors in Zhongshan Broad-Ocean Motor indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 43% of the company
• Insiders own 37% of Zhongshan Broad-Ocean Motor

Every investor in Zhongshan Broad-Ocean Motor Co., Ltd. (SZSE:002249) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched CN¥17b last week, while insiders who own 37% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about Zhongshan Broad-Ocean Motor.

View our latest analysis for Zhongshan Broad-Ocean Motor

What Does The Institutional Ownership Tell Us About Zhongshan Broad-Ocean Motor?

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.

Since institutions own only a small portion of Zhongshan Broad-Ocean Motor, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Zhongshan Broad-Ocean Motor. Looking at our data, we can see that the largest shareholder is Chuping Lu with 25% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.8% and 2.3%, of the shares outstanding, respectively. Hai Ming Xu, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 Zhongshan Broad-Ocean Motor

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 Zhongshan Broad-Ocean Motor Co., Ltd.. Insiders own CN¥6.2b worth of shares in the CN¥17b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of Zhongshan Broad-Ocean Motor shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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 Zhongshan Broad-Ocean Motor .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.