Ginlong Technologies Co., Ltd. (SZSE:300763) CEO Yiming Wang's holdings dropped 8.3% in value as a result of the recent pullback

Key Insights

• Insiders appear to have a vested interest in Ginlong Technologies' growth, as seen by their sizeable ownership
• The top 4 shareholders own 51% of the company
• Institutional ownership in Ginlong Technologies is 19%

To get a sense of who is truly in control of Ginlong Technologies Co., Ltd. (SZSE:300763), it is important to understand the ownership structure of the business. With 38% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to CN¥22b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Ginlong Technologies, beginning with the chart below.

View our latest analysis for Ginlong Technologies

What Does The Institutional Ownership Tell Us About Ginlong Technologies?

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.

Ginlong Technologies already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Ginlong Technologies' earnings history below. Of course, the future is what really matters.

Ginlong Technologies is not owned by hedge funds. The company's CEO Yiming Wang is the largest shareholder with 33% of shares outstanding. With 7.9% and 5.3% of the shares outstanding respectively, NIngbo Jucai Caiju Investment Management Co., Ltd. and Junshi Wang are the second and third largest shareholders.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Ginlong Technologies

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

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Ginlong Technologies Co., Ltd.. It has a market capitalization of just CN¥22b, and insiders have CN¥8.5b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 35% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ginlong Technologies. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 7.9%, of the Ginlong Technologies stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Ginlong Technologies better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Ginlong Technologies (of which 2 are potentially serious!) you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.