Shenzhen Zhaowei Machinery & Electronics Co., Ltd.'s (SZSE:003021) biggest owners are private companies who got richer after stock soared 17% last week

Key Insights

• The considerable ownership by private companies in Shenzhen Zhaowei Machinery & Electronics indicates that they collectively have a greater say in management and business strategy
• A total of 2 investors have a majority stake in the company with 54% ownership
• 18% of Shenzhen Zhaowei Machinery & Electronics is held by insiders

A look at the shareholders of Shenzhen Zhaowei Machinery & Electronics Co., Ltd. (SZSE:003021) can tell us which group is most powerful. With 51% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies collectively scored the highest last week as the company hit CN¥32b market cap following a 17% gain in the stock.

Let's delve deeper into each type of owner of Shenzhen Zhaowei Machinery & Electronics, beginning with the chart below.

View our latest analysis for Shenzhen Zhaowei Machinery & Electronics

What Does The Institutional Ownership Tell Us About Shenzhen Zhaowei Machinery & Electronics?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Shenzhen Zhaowei Machinery & Electronics already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Shenzhen Zhaowei Machinery & Electronics' earnings history below. Of course, the future is what really matters.

Shenzhen Zhaowei Machinery & Electronics is not owned by hedge funds. Our data shows that Shenzhen Qianhai Zhaowei Financial Holdings Co., Ltd. is the largest shareholder with 35% of shares outstanding. In comparison, the second and third largest shareholders hold about 18% and 10% of the stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Shenzhen Zhaowei Machinery & Electronics

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Shenzhen Zhaowei Machinery & Electronics Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥5.8b stake in this CN¥32b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shenzhen Zhaowei Machinery & Electronics. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 51%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shenzhen Zhaowei Machinery & Electronics better, we need to consider many other factors. For instance, we've identified 1 warning sign for Shenzhen Zhaowei Machinery & Electronics that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.