Private companies among Guizhou Taiyong-Changzheng Technology Co.,Ltd.'s (SZSE:002927) largest stockholders and were hit after last week's 14% price drop

Key Insights

• The considerable ownership by private companies in Guizhou Taiyong-Changzheng TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Shenzhen Taiyong Technology Co., Ltd. with a 52% stake
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Guizhou Taiyong-Changzheng Technology Co.,Ltd. (SZSE:002927) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private companies with 54% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, private companies endured the biggest losses as the stock fell by 14%.

In the chart below, we zoom in on the different ownership groups of Guizhou Taiyong-Changzheng TechnologyLtd.

Check out our latest analysis for Guizhou Taiyong-Changzheng TechnologyLtd

What Does The Institutional Ownership Tell Us About Guizhou Taiyong-Changzheng TechnologyLtd?

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.

As you can see, institutional investors have a fair amount of stake in Guizhou Taiyong-Changzheng TechnologyLtd. 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. 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 Guizhou Taiyong-Changzheng TechnologyLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Guizhou Taiyong-Changzheng TechnologyLtd. Our data shows that Shenzhen Taiyong Technology Co., Ltd. is the largest shareholder with 52% of shares outstanding. This implies that they have majority interest control of the future of the company. ChangYuan Technology Group Ltd. is the second largest shareholder owning 6.5% of common stock, and Tai'an Tianyu Enterprise Management Consulting Partnership Enterprise (Limited Partnership) holds about 1.3% of the company stock.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Guizhou Taiyong-Changzheng TechnologyLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 data suggests that insiders own under 1% of Guizhou Taiyong-Changzheng Technology Co.,Ltd. in their own names. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It appears that the board holds about CN¥7.2m worth of stock. This compares to a market capitalization of CN¥3.1b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in Guizhou Taiyong-Changzheng TechnologyLtd. 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.

Private Company Ownership

We can see that Private Companies own 54%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

Public companies currently own 6.5% of Guizhou Taiyong-Changzheng TechnologyLtd stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Guizhou Taiyong-Changzheng TechnologyLtd better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Guizhou Taiyong-Changzheng TechnologyLtd you should be aware of.

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.