Individual investors in Zhejiang Entive Smart Kitchen Appliance Co., Ltd. (SZSE:300911) are its biggest bettors, and their bets paid off as stock gained 12% last week

Key Insights

• Significant control over Zhejiang Entive Smart Kitchen Appliance by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 8 investors have a majority stake in the company with 51% ownership
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

Every investor in Zhejiang Entive Smart Kitchen Appliance Co., Ltd. (SZSE:300911) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 46% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, individual investors benefitted the most after the company's market cap rose by CN¥473m last week.

In the chart below, we zoom in on the different ownership groups of Zhejiang Entive Smart Kitchen Appliance.

View our latest analysis for Zhejiang Entive Smart Kitchen Appliance

What Does The Institutional Ownership Tell Us About Zhejiang Entive Smart Kitchen Appliance?

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.

Zhejiang Entive Smart Kitchen Appliance 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 Zhejiang Entive Smart Kitchen Appliance's earnings history below. Of course, the future is what really matters.

Zhejiang Entive Smart Kitchen Appliance is not owned by hedge funds. Our data shows that Zhejiang Entive Investment Management Co., Ltd. is the largest shareholder with 33% of shares outstanding. With 3.1% and 3.1% of the shares outstanding respectively, Yuehua Chen and Beijing Dingyuan Chuangxin Asset Management Co., Ltd. are the second and third largest shareholders. Yuehua Chen, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive. In addition, we found that Ji Sun, the CEO has 3.0% of the shares allocated to their name.

We did some more digging and found that 8 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Zhejiang Entive Smart Kitchen Appliance

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 most recent data indicates that insiders own some shares in Zhejiang Entive Smart Kitchen Appliance Co., Ltd.. As individuals, the insiders collectively own CN¥397m worth of the CN¥4.4b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 46% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhejiang Entive Smart Kitchen Appliance. 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 38%, of the Zhejiang Entive Smart Kitchen Appliance stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Zhejiang Entive Smart Kitchen Appliance .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.