Private companies invested in Zhejiang Zhaolong Interconnect Technology Co.,Ltd. (SZSE:300913) copped the brunt of last week's CN¥522m market cap decline

Key Insights

• The considerable ownership by private companies in Zhejiang Zhaolong Interconnect TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 59% of the company
• Insider ownership in Zhejiang Zhaolong Interconnect TechnologyLtd is 24%

If you want to know who really controls Zhejiang Zhaolong Interconnect Technology Co.,Ltd. (SZSE:300913), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 24% came under pressure after market cap dropped to CN¥8.8b last week,private companies took the most losses.

Let's delve deeper into each type of owner of Zhejiang Zhaolong Interconnect TechnologyLtd, beginning with the chart below.

Check out our latest analysis for Zhejiang Zhaolong Interconnect TechnologyLtd

What Does The Institutional Ownership Tell Us About Zhejiang Zhaolong Interconnect TechnologyLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Institutions have a very small stake in Zhejiang Zhaolong Interconnect TechnologyLtd. 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. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Zhejiang Zhaolong Interconnect TechnologyLtd. Looking at our data, we can see that the largest shareholder is Zhejiang Zhaolong Holding Co., Ltd. with 45% of shares outstanding. In comparison, the second and third largest shareholders hold about 15% and 4.9% of the stock. Interestingly, the bottom two of the top three shareholders also hold the title of Chief Executive Officer and Member of the Board of Directors, respectively, suggesting that these insiders have a personal stake in the company.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 59% stake.

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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Zhejiang Zhaolong Interconnect TechnologyLtd

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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Zhejiang Zhaolong Interconnect Technology Co.,Ltd.. Insiders own CN¥2.2b worth of shares in the CN¥8.8b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in Zhejiang Zhaolong Interconnect TechnologyLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 50%, of the Zhejiang Zhaolong Interconnect TechnologyLtd 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:

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 for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Zhejiang Zhaolong Interconnect TechnologyLtd (at least 1 which is a bit unpleasant) , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

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