Individual investors invested in Suzhou Shijia Science & Technology Inc. (SZSE:002796) up 11% last week, insiders too were rewarded

Key Insights

• Significant control over Suzhou Shijia Science & Technology by individual investors implies that the general public has more power to influence management and governance-related decisions
• 43% of the business is held by the top 18 shareholders
• 41% of Suzhou Shijia Science & Technology is held by insiders

If you want to know who really controls Suzhou Shijia Science & Technology Inc. (SZSE:002796), then you'll have to look at the makeup of its share registry. With 57% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that reaped the most benefits after last week’s 11% price gain, insiders also received a 41% cut.

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

Check out our latest analysis for Suzhou Shijia Science & Technology

What Does The Institutional Ownership Tell Us About Suzhou Shijia Science & Technology?

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.

Less than 5% of Suzhou Shijia Science & Technology is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. 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.

We note that hedge funds don't have a meaningful investment in Suzhou Shijia Science & Technology. Looking at our data, we can see that the largest shareholder is Juan Wang with 33% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.5% and 2.6% of the stock. Hui Ming Han, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

Our studies suggest that the top 18 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Suzhou Shijia Science & Technology

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Suzhou Shijia Science & Technology Inc.. Insiders own CN¥1.3b worth of shares in the CN¥3.2b 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 -- including retail investors -- own 57% of Suzhou Shijia Science & Technology. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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. For instance, we've identified 2 warning signs for Suzhou Shijia Science & Technology that you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free 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.

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

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.