Retail investors are Suzhou Shijia Science & Technology Inc.'s (SZSE:002796) biggest owners and were hit after market cap dropped CN¥234m

Key Insights

• The considerable ownership by retail investors in Suzhou Shijia Science & Technology indicates that they collectively have a greater say in management and business strategy
• The top 8 shareholders own 42% of the company
• Insider ownership in Suzhou Shijia Science & Technology is 40%

A look at the shareholders of Suzhou Shijia Science & Technology Inc. (SZSE:002796) can tell us which group is most powerful. With 58% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While insiders who own 40% came under pressure after market cap dropped to CN¥1.8b last week,retail investors took the most losses.

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

View 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 business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Suzhou Shijia Science & Technology is not owned by hedge funds. The company's largest shareholder is Juan Wang, with ownership of 32%. Meanwhile, the second and third largest shareholders, hold 4.5% and 2.4%, of the shares outstanding, respectively. Hui Ming Han, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

A deeper look at our ownership data shows that the top 8 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 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 a reasonable proportion of Suzhou Shijia Science & Technology Inc.. Insiders have a CN¥744m stake in this CN¥1.8b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 58% 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. To that end, you should be aware of the 3 warning signs we've spotted with Suzhou Shijia Science & Technology .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.