Guangdong Anjubao Digital Technology Co., Ltd.'s (SZSE:300155) most bullish insider, CEO Bo Zhang must be pleased with the recent 10% gain

Key Insights

• Insiders appear to have a vested interest in Guangdong Anjubao Digital Technology's growth, as seen by their sizeable ownership
• The top 2 shareholders own 53% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Guangdong Anjubao Digital Technology Co., Ltd. (SZSE:300155), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 55% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit CN¥2.7b market cap following a 10% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Guangdong Anjubao Digital Technology.

See our latest analysis for Guangdong Anjubao Digital Technology

What Does The Institutional Ownership Tell Us About Guangdong Anjubao Digital Technology?

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.

Guangdong Anjubao Digital Technology 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. 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 Guangdong Anjubao Digital Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

Guangdong Anjubao Digital Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Bo Zhang with 30% of shares outstanding. For context, the second largest shareholder holds about 24% of the shares outstanding, followed by an ownership of 3.5% by the third-largest shareholder. Interestingly, the second-largest shareholder, Pin Zhang is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 53% stake.

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. 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 Guangdong Anjubao Digital Technology

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. 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 information suggests that insiders own more than half of Guangdong Anjubao Digital Technology Co., Ltd.. This gives them effective control of the company. So they have a CN¥1.5b stake in this CN¥2.7b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Guangdong Anjubao Digital Technology. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Guangdong Anjubao Digital Technology better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Guangdong Anjubao Digital Technology (including 1 which shouldn't be ignored) .

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.