Kidswant Children Products Co.,Ltd.'s (SZSE:301078) market cap increased by CN¥553m, insiders receive a 33% cut

Key Insights

• Insiders appear to have a vested interest in Kidswant Children ProductsLtd's growth, as seen by their sizeable ownership
• The top 5 shareholders own 52% of the company
• Institutions own 17% of Kidswant Children ProductsLtd

Every investor in Kidswant Children Products Co.,Ltd. (SZSE:301078) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 33% to be precise, is individual insiders. 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¥553m last week.

Let's delve deeper into each type of owner of Kidswant Children ProductsLtd, beginning with the chart below.

Check out our latest analysis for Kidswant Children ProductsLtd

What Does The Institutional Ownership Tell Us About Kidswant Children ProductsLtd?

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.

Kidswant Children ProductsLtd 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 Kidswant Children ProductsLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Kidswant Children ProductsLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Jianguo Wang with 25% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 12% and 6.3%, of the shares outstanding, respectively.

On looking further, we found that 52% of the shares are owned by the top 5 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. 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 Kidswant Children ProductsLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Kidswant Children Products Co.,Ltd.. Insiders have a CN¥2.1b stake in this CN¥6.3b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Kidswant Children ProductsLtd. 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

We can see that Private Companies own 19%, of the shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Kidswant Children ProductsLtd better, we need to consider many other factors. For example, we've discovered 1 warning sign for Kidswant Children ProductsLtd that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.