Beijing SOJO Electric Co., Ltd.'s (SZSE:300444) 8.7% gain last week benefited both individual investors who own 52% as well as insiders

Key Insights

• Significant control over Beijing SOJO Electric by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 24 shareholders own 48% of the company
• Insiders own 43% of Beijing SOJO Electric

If you want to know who really controls Beijing SOJO Electric Co., Ltd. (SZSE:300444), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 52% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While individual investors were the group that reaped the most benefits after last week’s 8.7% price gain, insiders also received a 43% cut.

In the chart below, we zoom in on the different ownership groups of Beijing SOJO Electric.

See our latest analysis for Beijing SOJO Electric

What Does The Institutional Ownership Tell Us About Beijing SOJO 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 Beijing SOJO 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. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Beijing SOJO Electric. Looking at our data, we can see that the largest shareholder is the CEO Zhihong Zhao with 27% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.8% and 2.0% of the stock.

A deeper look at our ownership data shows that the top 24 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 Beijing SOJO Electric

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own a reasonable proportion of Beijing SOJO Electric Co., Ltd.. Insiders own CN¥2.5b worth of shares in the CN¥5.8b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 52% of Beijing SOJO Electric shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Beijing SOJO Electric better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Beijing SOJO Electric (including 1 which is concerning) .

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.