Suzhou Anjie Technology Co., Ltd. (SZSE:002635) Co-Chief Executive Officer Li Lu's holdings dropped 9.2% in value as a result of the recent pullback

Key Insights

• Significant insider control over Suzhou Anjie Technology implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 53% ownership
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Suzhou Anjie Technology Co., Ltd. (SZSE:002635) can tell us which group is most powerful. The group holding the most number of shares in the company, around 54% to be precise, is individual insiders. 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, insiders as a group endured the highest losses after market cap fell by CN¥957m.

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

See our latest analysis for Suzhou Anjie Technology

What Does The Institutional Ownership Tell Us About Suzhou Anjie Technology?

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.

Since institutions own only a small portion of Suzhou Anjie Technology, 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. So if the company itself can improve over time, we may well see more institutional buyers in the future. 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 Suzhou Anjie Technology. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Suzhou Anjie Technology's case, its Co-Chief Executive Officer, Li Lu, is the largest shareholder, holding 31% of shares outstanding. With 22% and 1.4% of the shares outstanding respectively, Chun Sheng Wang and Golden Eagle Asset Management Co. Ltd. are the second and third largest shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 53% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Suzhou Anjie Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Our information suggests that insiders own more than half of Suzhou Anjie Technology Co., Ltd.. This gives them effective control of the company. Given it has a market cap of CN¥9.5b, that means insiders have a whopping CN¥5.1b 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

With a 41% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Suzhou Anjie Technology. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Suzhou Anjie Technology .

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com