Individual investors are Moso Power Supply Technology Co.,Ltd's (SZSE:002660) biggest owners and were hit after market cap dropped CN¥300m

Key Insights

• The considerable ownership by individual investors in Moso Power Supply TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 4 shareholders
• Institutions own 11% of Moso Power Supply TechnologyLtd

A look at the shareholders of Moso Power Supply Technology Co.,Ltd (SZSE:002660) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 10% decline in share price, individual investors suffered the most losses.

Let's delve deeper into each type of owner of Moso Power Supply TechnologyLtd, beginning with the chart below.

Check out our latest analysis for Moso Power Supply TechnologyLtd

What Does The Institutional Ownership Tell Us About Moso Power Supply TechnologyLtd?

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 Moso Power Supply TechnologyLtd. 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 Moso Power Supply TechnologyLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Moso Power Supply TechnologyLtd. Looking at our data, we can see that the largest shareholder is Jinan Chanfa Rongsheng Equity Investment Co., Ltd. with 36% of shares outstanding. Jinan Energy Investment Co., Ltd is the second largest shareholder owning 7.7% of common stock, and Yongde Gu holds about 6.4% of the company stock. Yongde Gu, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. 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 Moso Power Supply TechnologyLtd

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. 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.

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.

We can report that insiders do own shares in Moso Power Supply Technology Co.,Ltd. As individuals, the insiders collectively own CN¥187m worth of the CN¥2.6b 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 46% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Moso Power Supply TechnologyLtd. 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 36%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Moso Power Supply TechnologyLtd better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Moso Power Supply TechnologyLtd (including 1 which is potentially serious) .

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.