MotoMotion China Corporation's (SZSE:301061) market cap increased by CN¥857m, insiders receive a 69% cut

Key Insights

• Insiders appear to have a vested interest in MotoMotion China's growth, as seen by their sizeable ownership
• Xiaoqin Li owns 67% of the company
• Institutions own 12% of MotoMotion China

A look at the shareholders of MotoMotion China Corporation (SZSE:301061) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 69% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit CN¥14b market cap following a 6.8% gain in the stock.

In the chart below, we zoom in on the different ownership groups of MotoMotion China.

See our latest analysis for MotoMotion China

What Does The Institutional Ownership Tell Us About MotoMotion China?

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.

MotoMotion China 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of MotoMotion China, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in MotoMotion China. The company's largest shareholder is Xiaoqin Li, with ownership of 67%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Ningbo Mingming Baibai Enterprise Management Partnership Enterprise (Limited Partnership) is the second largest shareholder owning 3.9% of common stock, and Changzhou Qingmiao Zhiqi Enterprise Management Consulting Partnership Enterprise (Limited Partnershi holds about 2.1% of the company stock. Additionally, the company's CEO Meijun Xu directly holds 1.5% of the total shares outstanding.

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. 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 MotoMotion China

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. 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.

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 most recent data indicates that insiders own the majority of MotoMotion China Corporation. This means they can collectively make decisions for the company. That means insiders have a very meaningful CN¥9.3b stake in this CN¥14b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over MotoMotion China. 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

We can see that Private Companies own 6.0%, of the shares on issue. 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 MotoMotion China better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

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.