YingTong Telecommunication Co.,Ltd.'s (SZSE:002861) largest shareholder, CEO Hui Huang sees holdings value fall by 13% following recent drop

Key Insights

• Insiders appear to have a vested interest in YingTong TelecommunicationLtd's growth, as seen by their sizeable ownership
• The top 5 shareholders own 51% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls YingTong Telecommunication Co.,Ltd. (SZSE:002861), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, insiders endured the biggest losses as the stock fell by 13%.

Let's take a closer look to see what the different types of shareholders can tell us about YingTong TelecommunicationLtd.

View our latest analysis for YingTong TelecommunicationLtd

What Does The Institutional Ownership Tell Us About YingTong TelecommunicationLtd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in YingTong TelecommunicationLtd. 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 YingTong TelecommunicationLtd, (below). Of course, keep in mind that there are other factors to consider, too.

YingTong TelecommunicationLtd is not owned by hedge funds. With a 29% stake, CEO Hui Huang is the largest shareholder. For context, the second largest shareholder holds about 8.7% of the shares outstanding, followed by an ownership of 6.3% by the third-largest shareholder.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 5 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 YingTong TelecommunicationLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 that insiders own more than half the YingTong Telecommunication Co.,Ltd. stock. This gives them a lot of power. So they have a CN¥637m stake in this CN¥1.2b business. 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 41% ownership, the general public, mostly comprising of individual investors, have some degree of sway over YingTong TelecommunicationLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand YingTong TelecommunicationLtd better, we need to consider many other factors. For instance, we've identified 3 warning signs for YingTong TelecommunicationLtd that you should be aware of.

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.