Chengzhi Sun Shandong Yuma Sun-shading Technology Corp., Ltd.'s (SZSE:300993) CEO is the most bullish insider, and their stock value gained 11%last week

Key Insights

• Shandong Yuma Sun-shading Technology's significant insider ownership suggests inherent interests in company's expansion
• 59% of the company is held by a single shareholder (Chengzhi Sun)
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

To get a sense of who is truly in control of Shandong Yuma Sun-shading Technology Corp., Ltd. (SZSE:300993), it is important to understand the ownership structure of the business. With 61% stake, individual insiders possess the maximum shares in the company. 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¥369m last week.

In the chart below, we zoom in on the different ownership groups of Shandong Yuma Sun-shading Technology.

View our latest analysis for Shandong Yuma Sun-shading Technology

What Does The Institutional Ownership Tell Us About Shandong Yuma Sun-shading Technology?

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.

Less than 5% of Shandong Yuma Sun-shading Technology is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

We note that hedge funds don't have a meaningful investment in Shandong Yuma Sun-shading Technology. With a 59% stake, CEO Chengzhi Sun is the largest shareholder. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. Shouguang Yuxin Investment Center (Limited Partnership) is the second largest shareholder owning 6.2% of common stock, and Shouguang Juxin Investment Center (Limited Partnership) holds about 2.0% of the company stock.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Shandong Yuma Sun-shading 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems that insiders own more than half the Shandong Yuma Sun-shading Technology Corp., Ltd. stock. This gives them a lot of power. That means they own CN¥2.0b worth of shares in the CN¥3.3b company. That's quite meaningful. 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

The general public, who are usually individual investors, hold a 26% stake in Shandong Yuma Sun-shading Technology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 8.5%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Shandong Yuma Sun-shading Technology better, we need to consider many other factors. Be aware that Shandong Yuma Sun-shading Technology is showing 1 warning sign in our investment analysis , you should know about...

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.