Rongcheer Industrial Technology (Suzhou) Co., Ltd.'s (SZSE:301360) most bullish insider is CEO Shuguang Qian, and their holdings value went up by 11% last week

Key Insights

• Insiders appear to have a vested interest in Rongcheer Industrial Technology (Suzhou)'s growth, as seen by their sizeable ownership
• The top 4 shareholders own 53% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Rongcheer Industrial Technology (Suzhou) Co., Ltd. (SZSE:301360), then you'll have to look at the makeup of its share registry. With 58% stake, individual insiders possess the maximum shares in the company. 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¥284m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Rongcheer Industrial Technology (Suzhou).

See our latest analysis for Rongcheer Industrial Technology (Suzhou)

What Does The Institutional Ownership Tell Us About Rongcheer Industrial Technology (Suzhou)?

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.

We can see that Rongcheer Industrial Technology (Suzhou) does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Rongcheer Industrial Technology (Suzhou), (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Rongcheer Industrial Technology (Suzhou). With a 18% stake, CEO Shuguang Qian is the largest shareholder. Lusheng Wang is the second largest shareholder owning 18% of common stock, and Wenbing Zhu holds about 13% of the company stock. Note that two of the top three shareholders are also Senior Key Executive and Member of the Board of Directors, respectively, once again pointing to significant ownership by company insiders.

After doing some more digging, we found that the top 4 shareholders control more than half of the company's shares which essentially means that there is concentrated ownership amongst the top shareholders, most of whom happen to be insiders!

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. 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 Rongcheer Industrial Technology (Suzhou)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own the majority of Rongcheer Industrial Technology (Suzhou) Co., Ltd.. This means they can collectively make decisions for the company. Given it has a market cap of CN¥2.9b, that means they have CN¥1.7b worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. 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

We can see that Private Companies own 10.0%, of the shares on issue. 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 Rongcheer Industrial Technology (Suzhou) better, we need to consider many other factors. For example, we've discovered 2 warning signs for Rongcheer Industrial Technology (Suzhou) (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.