Individual investors who hold 49% of Shijiazhuang Tonhe Electronics Technologies Co.,Ltd. (SZSE:300491) gained 10%, insiders profited as well

Key Insights

• Significant control over Shijiazhuang Tonhe Electronics TechnologiesLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 15 shareholders own 50% of the company
• Insider ownership in Shijiazhuang Tonhe Electronics TechnologiesLtd is 44%

Every investor in Shijiazhuang Tonhe Electronics Technologies Co.,Ltd. (SZSE:300491) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 49% 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 10% price gain, insiders also received a 44% cut.

In the chart below, we zoom in on the different ownership groups of Shijiazhuang Tonhe Electronics TechnologiesLtd.

View our latest analysis for Shijiazhuang Tonhe Electronics TechnologiesLtd

What Does The Institutional Ownership Tell Us About Shijiazhuang Tonhe Electronics TechnologiesLtd?

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.

We can see that Shijiazhuang Tonhe Electronics TechnologiesLtd does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Shijiazhuang Tonhe Electronics TechnologiesLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Shijiazhuang Tonhe Electronics TechnologiesLtd. Looking at our data, we can see that the largest shareholder is Tong Jia with 15% of shares outstanding. Xiao Ma Feng is the second largest shareholder owning 14% of common stock, and Xianwei Ren holds about 4.5% of the company stock.

After doing some more digging, we found that the top 15 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Shijiazhuang Tonhe Electronics TechnologiesLtd

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. 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.

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 Shijiazhuang Tonhe Electronics Technologies Co.,Ltd.. Insiders have a CN¥1.4b stake in this CN¥3.3b 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, who are usually individual investors, hold a 49% stake in Shijiazhuang Tonhe Electronics TechnologiesLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shijiazhuang Tonhe Electronics TechnologiesLtd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Shijiazhuang Tonhe Electronics TechnologiesLtd , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.