Individual investors who hold 56% of Shanghai Huaming Intelligent Terminal Equipment Co., Ltd. (SZSE:300462) gained 20%, insiders profited as well

Key Insights

• Significant control over Shanghai Huaming Intelligent Terminal Equipment by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 25 investors have a majority stake in the company with 44% ownership
• Insider ownership in Shanghai Huaming Intelligent Terminal Equipment is 40%

Every investor in Shanghai Huaming Intelligent Terminal Equipment Co., Ltd. (SZSE:300462) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company 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 20% increase in the stock price last week, individual investors profited the most, but insiders who own 40% stock also stood to gain from the increase.

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. So if the company itself can improve over time, we may well see more institutional buyers in the future. 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.

We note that hedge funds don't have a meaningful investment 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. Zhi Han is the second largest shareholder owning 2.7% of common stock, and Genfang Xie holds about 2.6% of the company stock.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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

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.

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.

It seems insiders own a significant proportion of Shanghai Huaming Intelligent Terminal Equipment Co., Ltd.. Insiders have a CN¥668m stake in this CN¥1.7b business. 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 -- including retail investors -- own 56% of Shanghai Huaming Intelligent Terminal Equipment. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Shanghai Huaming Intelligent Terminal Equipment , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.