Pengju Nie Keli Motor Group Co., Ltd.'s (SZSE:002892) CEO is the most bullish insider, and their stock value gained 26%last week

Key Insights

• Insiders appear to have a vested interest in Keli Motor Group's growth, as seen by their sizeable ownership
• 51% of the business is held by the top 4 shareholders
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

To get a sense of who is truly in control of Keli Motor Group Co., Ltd. (SZSE:002892), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥1.5b last week.

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

See our latest analysis for Keli Motor Group

What Does The Institutional Ownership Tell Us About Keli Motor Group?

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.

Keli Motor Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Keli Motor Group's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Keli Motor Group. With a 25% stake, CEO Pengju Nie is the largest shareholder. With 21% and 3.4% of the shares outstanding respectively, Baosheng Nie and Guang Dong Guan Xiang Zi Ben Tou Zi Co.Ltd are the second and third largest shareholders.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 Keli Motor Group

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 most recent data indicates that insiders own a reasonable proportion of Keli Motor Group Co., Ltd.. Insiders own CN¥3.6b worth of shares in the CN¥7.2b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. 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 42% stake in Keli Motor Group. 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 Keli Motor Group better, we need to consider many other factors. Take risks for example - Keli Motor Group has 3 warning signs (and 1 which can't be ignored) we think you should know about.

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.