ZheJiang KangLongDa Special Protection Technology Co., Ltd's (SHSE:603665) market cap increased by CN¥342m, insiders receive a 47% cut

Key Insights

• Significant insider control over ZheJiang KangLongDa Special Protection Technology implies vested interests in company growth
• A total of 4 investors have a majority stake in the company with 53% ownership
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of ZheJiang KangLongDa Special Protection Technology Co., Ltd (SHSE:603665), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 47% 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.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥342m last week.

Let's take a closer look to see what the different types of shareholders can tell us about ZheJiang KangLongDa Special Protection Technology.

View our latest analysis for ZheJiang KangLongDa Special Protection Technology

What Does The Institutional Ownership Tell Us About ZheJiang KangLongDa Special Protection Technology?

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.

ZheJiang KangLongDa Special Protection 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at ZheJiang KangLongDa Special Protection Technology's earnings history below. Of course, the future is what really matters.

ZheJiang KangLongDa Special Protection Technology is not owned by hedge funds. Jian Zhang is currently the company's largest shareholder with 16% of shares outstanding. Huili Zhang is the second largest shareholder owning 16% of common stock, and Jianfang Zhang holds about 15% of the company stock. Jianfang Zhang, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

On looking further, we found that 53% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 ZheJiang KangLongDa Special Protection Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 maintain a significant holding in ZheJiang KangLongDa Special Protection Technology Co., Ltd. Insiders have a CN¥1.8b stake in this CN¥3.7b business. 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 37% stake in ZheJiang KangLongDa Special Protection 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

It seems that Private Companies own 6.8%, of the ZheJiang KangLongDa Special Protection Technology stock. 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 ZheJiang KangLongDa Special Protection Technology better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for ZheJiang KangLongDa Special Protection Technology 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