Beijing Hengyu Datacom Aviation Equipment co., LTD. (SZSE:300965) adds CN¥151m in market cap and insiders have a 68% stake in that gain

Key Insights

• Insiders appear to have a vested interest in Beijing Hengyu Datacom Aviation Equipment's growth, as seen by their sizeable ownership
• The largest shareholder of the company is Danni Rao with a 55% stake
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Beijing Hengyu Datacom Aviation Equipment co., LTD. (SZSE:300965) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 68% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥151m last week.

In the chart below, we zoom in on the different ownership groups of Beijing Hengyu Datacom Aviation Equipment.

View our latest analysis for Beijing Hengyu Datacom Aviation Equipment

What Does The Institutional Ownership Tell Us About Beijing Hengyu Datacom Aviation 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.

Less than 5% of Beijing Hengyu Datacom Aviation Equipment is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Beijing Hengyu Datacom Aviation Equipment is not owned by hedge funds. Our data shows that Danni Rao is the largest shareholder with 55% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 9.5% of the shares outstanding, followed by an ownership of 7.0% by the third-largest shareholder. Additionally, the company's CEO Shugong Wang directly holds 3.6% of the total shares outstanding.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Beijing Hengyu Datacom Aviation 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.

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.

It seems that insiders own more than half the Beijing Hengyu Datacom Aviation Equipment co., LTD. stock. This gives them a lot of power. That means they own CN¥1.0b worth of shares in the CN¥1.5b company. That's quite meaningful. 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

The general public, who are usually individual investors, hold a 22% stake in Beijing Hengyu Datacom Aviation Equipment. 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

Our data indicates that Private Companies hold 7.0%, of the company's shares. 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. Case in point: We've spotted 2 warning signs for Beijing Hengyu Datacom Aviation Equipment you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.