Ancang Shao Qingdao Paguld Intelligent Manufacturing Co.,Ltd.'s (SZSE:301456) CEO is the most bullish insider, and their stock value gained 17%last week

Key Insights

• Significant insider control over Qingdao Paguld Intelligent ManufacturingLtd implies vested interests in company growth
• The top 2 shareholders own 50% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Qingdao Paguld Intelligent Manufacturing Co.,Ltd. (SZSE:301456) can tell us which group is most powerful. The group holding the most number of shares in the company, around 60% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders were the biggest beneficiaries of last week’s 17% gain.

Let's delve deeper into each type of owner of Qingdao Paguld Intelligent ManufacturingLtd, beginning with the chart below.

See our latest analysis for Qingdao Paguld Intelligent ManufacturingLtd

What Does The Institutional Ownership Tell Us About Qingdao Paguld Intelligent ManufacturingLtd?

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.

Since institutions own only a small portion of Qingdao Paguld Intelligent ManufacturingLtd, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. 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.

We note that hedge funds don't have a meaningful investment in Qingdao Paguld Intelligent ManufacturingLtd. Looking at our data, we can see that the largest shareholder is the CEO Ancang Shao with 32% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 18% and 7.3%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Yulan Li is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Qingdao Paguld Intelligent ManufacturingLtd

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. 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.

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.

Our information suggests that insiders own more than half of Qingdao Paguld Intelligent Manufacturing Co.,Ltd.. This gives them effective control of the company. That means they own CN¥2.1b worth of shares in the CN¥3.6b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in Qingdao Paguld Intelligent ManufacturingLtd. 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 Equity Ownership

With a stake of 7.3%, private equity firms could influence the Qingdao Paguld Intelligent ManufacturingLtd board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

Our data indicates that Private Companies hold 3.3%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Qingdao Paguld Intelligent ManufacturingLtd better, we need to consider many other factors. For instance, we've identified 2 warning signs for Qingdao Paguld Intelligent ManufacturingLtd that you should be aware of.

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.

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