Shandong Shuangyi Technology Co., Ltd.'s (SZSE:300690) last week's 9.3% decline must have disappointed retail investors who have a significant stake

Key Insights

• Significant control over Shandong Shuangyi Technology by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 23 investors have a majority stake in the company with 49% ownership
• Insider ownership in Shandong Shuangyi Technology is 46%

Every investor in Shandong Shuangyi Technology Co., Ltd. (SZSE:300690) should be aware of the most powerful shareholder groups. With 51% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders, who own 46% shares weren’t spared from last week’s CN¥448m market cap drop, retail investors as a group suffered the maximum losses

Let's delve deeper into each type of owner of Shandong Shuangyi Technology, beginning with the chart below.

Check out our latest analysis for Shandong Shuangyi Technology

What Does The Institutional Ownership Tell Us About Shandong Shuangyi Technology?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Institutions have a very small stake in Shandong Shuangyi Technology. 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 company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. 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.

Shandong Shuangyi Technology is not owned by hedge funds. Qing Hua Wang is currently the company's largest shareholder with 38% of shares outstanding. In comparison, the second and third largest shareholders hold about 2.0% and 1.3% of the stock. In addition, we found that Jianmei Yao, the CEO has 0.9% of the shares allocated to their name.

On studying our ownership data, we found that 23 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Shandong Shuangyi Technology

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.

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 most recent data indicates that insiders own a reasonable proportion of Shandong Shuangyi Technology Co., Ltd.. Insiders own CN¥2.0b worth of shares in the CN¥4.4b company. 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 -- including retail investors -- own 51% of Shandong Shuangyi Technology. 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Shandong Shuangyi Technology you should know about.

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.

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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.