Shanghai Metersbonwe Fashion and Accessories Co., Ltd.'s (SZSE:002269) market cap surged CN¥402m last week, individual investors who have a lot riding on the company were rewarded

Key Insights

• Significant control over Shanghai Metersbonwe Fashion and Accessories by individual investors implies that the general public has more power to influence management and governance-related decisions
• 50% of the business is held by the top 4 shareholders
• 21% of Shanghai Metersbonwe Fashion and Accessories is held by Institutions

A look at the shareholders of Shanghai Metersbonwe Fashion and Accessories Co., Ltd. (SZSE:002269) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 37% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, individual investors collectively scored the highest last week as the company hit CN¥3.9b market cap following a 12% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Shanghai Metersbonwe Fashion and Accessories.

See our latest analysis for Shanghai Metersbonwe Fashion and Accessories

What Does The Institutional Ownership Tell Us About Shanghai Metersbonwe Fashion and Accessories?

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.

As you can see, institutional investors have a fair amount of stake in Shanghai Metersbonwe Fashion and Accessories. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Shanghai Metersbonwe Fashion and Accessories' historic earnings and revenue below, but keep in mind there's always more to the story.

Shanghai Metersbonwe Fashion and Accessories is not owned by hedge funds. Shanghai Huafu Investment Ltd. is currently the company's largest shareholder with 33% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.0% and 6.0% of the stock.

On looking further, we found that 50% 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 Shanghai Metersbonwe Fashion and Accessories

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

Shareholders would probably be interested to learn that insiders own shares in Shanghai Metersbonwe Fashion and Accessories Co., Ltd.. In their own names, insiders own CN¥347m worth of stock in the CN¥3.9b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 37% stake in Shanghai Metersbonwe Fashion and Accessories. 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

Our data indicates that Private Companies hold 33%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Shanghai Metersbonwe Fashion and Accessories is showing 1 warning sign in our investment analysis , you should know about...

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.