Yuchang Huang Ningbo Dechang Electrical Machinery Made Co., Ltd.'s (SHSE:605555) CEO is the most bullish insider, and their stock value gained 9.1%last week

Key Insights

• Ningbo Dechang Electrical Machinery Made's significant insider ownership suggests inherent interests in company's expansion
• A total of 3 investors have a majority stake in the company with 56% ownership
• 11% of Ningbo Dechang Electrical Machinery Made is held by Institutions

A look at the shareholders of Ningbo Dechang Electrical Machinery Made Co., Ltd. (SHSE:605555) can tell us which group is most powerful. With 42% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥614m last week.

In the chart below, we zoom in on the different ownership groups of Ningbo Dechang Electrical Machinery Made.

Check out our latest analysis for Ningbo Dechang Electrical Machinery Made

What Does The Institutional Ownership Tell Us About Ningbo Dechang Electrical Machinery Made?

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.

Ningbo Dechang Electrical Machinery Made already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Ningbo Dechang Electrical Machinery Made's earnings history below. Of course, the future is what really matters.

Ningbo Dechang Electrical Machinery Made is not owned by hedge funds. With a 24% stake, CEO Yuchang Huang is the largest shareholder. With 20% and 12% of the shares outstanding respectively, Changshuo (Ningbo) Enterprise Management Co., Ltd. and Liying Zhang are the second and third largest shareholders. Interestingly, the third-largest shareholder, Liying Zhang is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Ningbo Dechang Electrical Machinery Made

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 Ningbo Dechang Electrical Machinery Made Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥3.1b stake in this CN¥7.4b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. 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 26% stake in Ningbo Dechang Electrical Machinery Made. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 21%, of the Ningbo Dechang Electrical Machinery Made 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 Ningbo Dechang Electrical Machinery Made better, we need to consider many other factors. Be aware that Ningbo Dechang Electrical Machinery Made is showing 1 warning sign in our investment analysis , you should know about...

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.