Hao Yu Zhang Shenzhen Kaizhong Precision Technology Co., Ltd.'s (SZSE:002823) CEO is the most bullish insider, and their stock value gained 10%last week

Key Insights

• Shenzhen Kaizhong Precision Technology's significant insider ownership suggests inherent interests in company's expansion
• The top 3 shareholders own 54% of the company
• Institutions own 11% of Shenzhen Kaizhong Precision Technology

Every investor in Shenzhen Kaizhong Precision Technology Co., Ltd. (SZSE:002823) should be aware of the most powerful shareholder groups. With 52% stake, individual insiders 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).

As a result, insiders scored the highest last week as the company hit CN¥3.1b market cap following a 10% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Shenzhen Kaizhong Precision Technology.

View our latest analysis for Shenzhen Kaizhong Precision Technology

What Does The Institutional Ownership Tell Us About Shenzhen Kaizhong Precision 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.

We can see that Shenzhen Kaizhong Precision Technology 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. 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 Shenzhen Kaizhong Precision Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Shenzhen Kaizhong Precision Technology. Looking at our data, we can see that the largest shareholder is the CEO Hao Yu Zhang with 27% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 23% and 4.3%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Shenzhen Kaizhong Precision Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders own more than half of Shenzhen Kaizhong Precision Technology Co., Ltd.. This gives them effective control of the company. Given it has a market cap of CN¥3.1b, that means they have CN¥1.6b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 36% stake in Shenzhen Kaizhong Precision 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 Shenzhen Kaizhong Precision Technology better, we need to consider many other factors. For example, we've discovered 3 warning signs for Shenzhen Kaizhong Precision Technology (2 don't sit too well with us!) that you should be aware of before investing here.

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.

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