Retail investors who hold 59% of SanFeng Intelligent Equipment Group Co., Ltd. (SZSE:300276) gained 16%, insiders profited as well

Key Insights

• The considerable ownership by retail investors in SanFeng Intelligent Equipment Group indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 41% of the company
• Insider ownership in SanFeng Intelligent Equipment Group is 36%

Every investor in SanFeng Intelligent Equipment Group Co., Ltd. (SZSE:300276) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 59% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 16% increase in the stock price last week, retail investors profited the most, but insiders who own 36% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of SanFeng Intelligent Equipment Group, beginning with the chart below.

View our latest analysis for SanFeng Intelligent Equipment Group

What Does The Lack Of Institutional Ownership Tell Us About SanFeng Intelligent Equipment Group?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of SanFeng Intelligent Equipment Group, for yourself, below.

SanFeng Intelligent Equipment Group is not owned by hedge funds. With a 16% stake, CEO Hanping Zhu is the largest shareholder. With 7.8% and 7.7% of the shares outstanding respectively, Hanmei Zhu and Wei Chen are the second and third largest shareholders. Interestingly, the third-largest shareholder, Wei Chen is also a Vice Chairman, again, indicating strong insider ownership amongst the company's top shareholders.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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

Insider Ownership Of SanFeng Intelligent Equipment Group

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. 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.

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.

It seems insiders own a significant proportion of SanFeng Intelligent Equipment Group Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥5.9b stake in this CN¥16b business. 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 substantial 59% stake in SanFeng Intelligent Equipment Group, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 4.4%, of the SanFeng Intelligent Equipment Group stock. 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that SanFeng Intelligent Equipment Group is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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.