Ocean's King Lighting Science & Technology Co., Ltd (SZSE:002724) adds CN¥400m in market cap and insiders have a 71% stake in that gain

Key Insights

• Insiders appear to have a vested interest in Ocean's King Lighting Science & Technology's growth, as seen by their sizeable ownership
• The largest shareholder of the company is Shi Zhou with a 70% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Ocean's King Lighting Science & Technology Co., Ltd (SZSE:002724), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 71% 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 scored the highest last week as the company hit CN¥4.2b market cap following a 11% gain in the stock.

Let's delve deeper into each type of owner of Ocean's King Lighting Science & Technology, beginning with the chart below.

See our latest analysis for Ocean's King Lighting Science & Technology

What Does The Institutional Ownership Tell Us About Ocean's King Lighting Science & 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 Ocean's King Lighting Science & 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. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Hedge funds don't have many shares in Ocean's King Lighting Science & Technology. Our data shows that Shi Zhou is the largest shareholder with 70% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 8.9% and 1.1% of the shares outstanding respectively, Ocean's King Lighting Science & Technology Co., Ltd., ESOP and Jiangyin Lianhua Optimized and Adjusted Industrial Investment Partnership Enterprise are the second and third largest shareholders.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Ocean's King Lighting Science & Technology

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.

Our most recent data indicates that insiders own the majority of Ocean's King Lighting Science & Technology Co., Ltd. This means they can collectively make decisions for the company. Given it has a market cap of CN¥4.2b, that means they have CN¥3.0b worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ocean's King Lighting Science & 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Ocean's King Lighting Science & Technology better, we need to consider many other factors. Be aware that Ocean's King Lighting Science & Technology is showing 4 warning signs in our investment analysis , and 1 of those is a bit concerning...

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.