Finework (Hu Nan) New Energy Technology Co., Ltd (SZSE:301232) insiders, who hold 30% of the firm would be disappointed by the recent pullback

Key Insights

• Finework (Hu Nan) New Energy Technology's significant insider ownership suggests inherent interests in company's expansion
• 53% of the business is held by the top 6 shareholders
• Institutional ownership in Finework (Hu Nan) New Energy Technology is 26%

Every investor in Finework (Hu Nan) New Energy Technology Co., Ltd (SZSE:301232) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 30% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by CN¥341m.

Let's take a closer look to see what the different types of shareholders can tell us about Finework (Hu Nan) New Energy Technology.

View our latest analysis for Finework (Hu Nan) New Energy Technology

What Does The Institutional Ownership Tell Us About Finework (Hu Nan) New Energy Technology?

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.

Finework (Hu Nan) New Energy Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Finework (Hu Nan) New Energy Technology, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Finework (Hu Nan) New Energy Technology. Looking at our data, we can see that the largest shareholder is Youjun Zhang with 24% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.9% and 6.7% of the stock. Jie Liu, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Finework (Hu Nan) New Energy Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 information suggests that insiders maintain a significant holding in Finework (Hu Nan) New Energy Technology Co., Ltd. Insiders own CN¥597m worth of shares in the CN¥2.0b company. 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 28% stake in Finework (Hu Nan) New Energy Technology. 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

Our data indicates that Private Companies hold 16%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Finework (Hu Nan) New Energy Technology better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Finework (Hu Nan) New Energy Technology (including 1 which is a bit unpleasant) .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.