Retail investors among Dongguan Kingsun Optoelectronic Co.,Ltd.'s (SZSE:002638) largest stockholders and were hit after last week's 8.8% price drop

Key Insights

• The considerable ownership by retail investors in Dongguan Kingsun OptoelectronicLtd indicates that they collectively have a greater say in management and business strategy
• The top 8 shareholders own 53% of the company
• Insider ownership in Dongguan Kingsun OptoelectronicLtd is 26%

If you want to know who really controls Dongguan Kingsun Optoelectronic Co.,Ltd. (SZSE:002638), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 41% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 8.8% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 26% stock also took a hit.

Let's delve deeper into each type of owner of Dongguan Kingsun OptoelectronicLtd, beginning with the chart below.

View our latest analysis for Dongguan Kingsun OptoelectronicLtd

What Does The Institutional Ownership Tell Us About Dongguan Kingsun OptoelectronicLtd?

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 Dongguan Kingsun OptoelectronicLtd does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Dongguan Kingsun OptoelectronicLtd's earnings history below. Of course, the future is what really matters.

Dongguan Kingsun OptoelectronicLtd is not owned by hedge funds. The company's largest shareholder is Kingsun Enterprises Group Co., Ltd, with ownership of 10%. Shandong Financial Asset Management Co., Ltd., Asset Management Arm is the second largest shareholder owning 7.6% of common stock, and Huaxia Life Insurance Co., Ltd. holds about 6.7% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. 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 Dongguan Kingsun OptoelectronicLtd

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

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 insiders own a significant proportion of Dongguan Kingsun Optoelectronic Co.,Ltd.. Insiders own CN¥1.0b worth of shares in the CN¥4.0b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 41% stake in Dongguan Kingsun OptoelectronicLtd. 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

Our data indicates that Private Companies hold 17%, of the company's shares. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.