Individual investors among Eaglerise Electric & Electronic (China) Co., Ltd's (SZSE:002922) largest stockholders and were hit after last week's 6.2% price drop

Key Insights

• The considerable ownership by individual investors in Eaglerise Electric & Electronic (China) indicates that they collectively have a greater say in management and business strategy
• The top 15 shareholders own 50% of the company
• Insiders own 32% of Eaglerise Electric & Electronic (China)

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A look at the shareholders of Eaglerise Electric & Electronic (China) Co., Ltd (SZSE:002922) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 36% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While the holdings of individual investors took a hit after last week’s 6.2% price drop, insiders with their 32% also suffered.

In the chart below, we zoom in on the different ownership groups of Eaglerise Electric & Electronic (China).

Check out our latest analysis for Eaglerise Electric & Electronic (China)

What Does The Institutional Ownership Tell Us About Eaglerise Electric & Electronic (China)?

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.

Eaglerise Electric & Electronic (China) already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Eaglerise Electric & Electronic (China)'s historic earnings and revenue below, but keep in mind there's always more to the story.

Eaglerise Electric & Electronic (China) is not owned by hedge funds. Juncheng Xiao is currently the company's largest shareholder with 27% of shares outstanding. With 4.8% and 2.9% of the shares outstanding respectively, Manulife Asset Management and Guangdong Hengjian International Investment Co., Ltd. are the second and third largest shareholders.

After doing some more digging, we found that the top 15 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Eaglerise Electric & Electronic (China)

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.

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.

It seems insiders own a significant proportion of Eaglerise Electric & Electronic (China) Co., Ltd. It has a market capitalization of just CN¥7.2b, and insiders have CN¥2.3b worth of shares in their own names. 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 36% stake in the company, and hence can't easily be ignored. 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 Eaglerise Electric & Electronic (China) better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Eaglerise Electric & Electronic (China) (including 1 which is significant) .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.