Individual investors invested in Suzhou Industrial Park Heshun Electric Co., Ltd. (SZSE:300141) copped the brunt of last week's CN¥312m market cap decline

Key Insights

• The considerable ownership by individual investors in Suzhou Industrial Park Heshun Electric indicates that they collectively have a greater say in management and business strategy
• A total of 3 investors have a majority stake in the company with 51% ownership
• Insider ownership in Suzhou Industrial Park Heshun Electric is 34%

Every investor in Suzhou Industrial Park Heshun Electric Co., Ltd. (SZSE:300141) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 43% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While the holdings of individual investors took a hit after last week’s 12% price drop, insiders with their 34% also suffered.

In the chart below, we zoom in on the different ownership groups of Suzhou Industrial Park Heshun Electric.

Check out our latest analysis for Suzhou Industrial Park Heshun Electric

What Does The Institutional Ownership Tell Us About Suzhou Industrial Park Heshun Electric?

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.

Since institutions own only a small portion of Suzhou Industrial Park Heshun Electric, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Hedge funds don't have many shares in Suzhou Industrial Park Heshun Electric. The company's largest shareholder is Jian Hua Yao, with ownership of 24%. Suzhou Lvmai Electric Holdings (Group) Co., Ltd. is the second largest shareholder owning 20% of common stock, and Xin Shen holds about 7.5% of the company stock.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of 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. 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 Suzhou Industrial Park Heshun Electric

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 information suggests that insiders maintain a significant holding in Suzhou Industrial Park Heshun Electric Co., Ltd.. It has a market capitalization of just CN¥2.4b, and insiders have CN¥809m 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, who are usually individual investors, hold a 43% stake in Suzhou Industrial Park Heshun Electric. 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

It seems that Private Companies own 20%, of the Suzhou Industrial Park Heshun Electric stock. 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 Suzhou Industrial Park Heshun Electric better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Suzhou Industrial Park Heshun Electric you should know about.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.