Individual investors among Shanghai Huaming Intelligent Terminal Equipment Co., Ltd.'s (SZSE:300462) largest stockholders and were hit after last week's 13% price drop

Key Insights

• Shanghai Huaming Intelligent Terminal Equipment's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 44% of the business is held by the top 19 shareholders
• Insiders own 40% of Shanghai Huaming Intelligent Terminal Equipment

Every investor in Shanghai Huaming Intelligent Terminal Equipment Co., Ltd. (SZSE:300462) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 13% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 40% stock also took a hit.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai Huaming Intelligent Terminal Equipment.

View our latest analysis for Shanghai Huaming Intelligent Terminal Equipment

What Does The Institutional Ownership Tell Us About Shanghai Huaming Intelligent Terminal Equipment?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Institutions have a very small stake in Shanghai Huaming Intelligent Terminal Equipment. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Hedge funds don't have many shares in Shanghai Huaming Intelligent Terminal Equipment. Looking at our data, we can see that the largest shareholder is the CEO Liang Zhang with 29% of shares outstanding. With 2.7% and 2.6% of the shares outstanding respectively, Zhi Han and Genfang Xie are the second and third largest shareholders.

A deeper look at our ownership data shows that the top 19 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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Shanghai Huaming Intelligent Terminal Equipment

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that insiders maintain a significant holding in Shanghai Huaming Intelligent Terminal Equipment Co., Ltd.. It has a market capitalization of just CN¥1.8b, and insiders have CN¥726m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of Shanghai Huaming Intelligent Terminal Equipment shares. 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.

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. Case in point: We've spotted 2 warning signs for Shanghai Huaming Intelligent Terminal Equipment you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.