Himile Mechanical Science and Technology (Shandong) Co., Ltd (SZSE:002595) insiders, who hold 57% of the firm would be disappointed by the recent pullback

Key Insights

• Insiders appear to have a vested interest in Himile Mechanical Science and Technology (Shandong)'s growth, as seen by their sizeable ownership
• The top 3 shareholders own 51% of the company
• Institutional ownership in Himile Mechanical Science and Technology (Shandong) is 14%

Every investor in Himile Mechanical Science and Technology (Shandong) Co., Ltd (SZSE:002595) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 57% 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 as a group endured the highest losses after market cap fell by CN¥1.8b.

In the chart below, we zoom in on the different ownership groups of Himile Mechanical Science and Technology (Shandong).

View our latest analysis for Himile Mechanical Science and Technology (Shandong)

What Does The Institutional Ownership Tell Us About Himile Mechanical Science and Technology (Shandong)?

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.

We can see that Himile Mechanical Science and Technology (Shandong) 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Himile Mechanical Science and Technology (Shandong), (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Himile Mechanical Science and Technology (Shandong). Gongyun Zhang is currently the company's largest shareholder with 30% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 14% and 6.7%, of the shares outstanding, respectively.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 51% 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Himile Mechanical Science and Technology (Shandong)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

It seems that insiders own more than half the Himile Mechanical Science and Technology (Shandong) Co., Ltd stock. This gives them a lot of power. Given it has a market cap of CN¥35b, that means insiders have a whopping CN¥20b worth of shares in their own names. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public, who are usually individual investors, hold a 28% stake in Himile Mechanical Science and Technology (Shandong). While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

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. Take risks for example - Himile Mechanical Science and Technology (Shandong) has 1 warning sign we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.