Insiders were the key beneficiaries as Shenzhen New Land Tool Planning & Architectural Design Co., Ltd.'s (SZSE:300778) market cap rises to CN¥2.1b

Key Insights

• Shenzhen New Land Tool Planning & Architectural Design's significant insider ownership suggests inherent interests in company's expansion
• A total of 3 investors have a majority stake in the company with 61% ownership
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Shenzhen New Land Tool Planning & Architectural Design Co., Ltd. (SZSE:300778) can tell us which group is most powerful. The group holding the most number of shares in the company, around 44% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit CN¥2.1b market cap following a 10% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Shenzhen New Land Tool Planning & Architectural Design.

Check out our latest analysis for Shenzhen New Land Tool Planning & Architectural Design

What Does The Institutional Ownership Tell Us About Shenzhen New Land Tool Planning & Architectural Design?

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 Shenzhen New Land Tool Planning & Architectural Design 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. So if the company itself can improve over time, we may well see more institutional buyers in the future. 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 Shenzhen New Land Tool Planning & Architectural Design. Chunjie Zhang is currently the largest shareholder, with 33% of shares outstanding. Shenzhen Yuanwang Industrial Co., Ltd. is the second largest shareholder owning 16% of common stock, and Bo Song holds about 11% of the company stock. Bo Song, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 61% stake.

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 Shenzhen New Land Tool Planning & Architectural Design

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 a reasonable proportion of Shenzhen New Land Tool Planning & Architectural Design Co., Ltd.. Insiders own CN¥940m worth of shares in the CN¥2.1b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 35% stake in Shenzhen New Land Tool Planning & Architectural Design. 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 16%, 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 Shenzhen New Land Tool Planning & Architectural Design better, we need to consider many other factors. For example, we've discovered 2 warning signs for Shenzhen New Land Tool Planning & Architectural Design that you should be aware of before investing here.

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.

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