Stock Analysis

Shanghai Menon Animal Nutrition Technology Co., Ltd.'s (SZSE:301156): Senior Key Executive Wei Hong is the most bullish insider, and their stock value gained 24% last week

SZSE:301156
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Key Insights

  • Shanghai Menon Animal Nutrition Technology's significant insider ownership suggests inherent interests in company's expansion
  • The top 3 shareholders own 57% of the company
  • Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Shanghai Menon Animal Nutrition Technology Co., Ltd. (SZSE:301156), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 64% 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 were the biggest beneficiaries of last week’s 24% gain.

Let's delve deeper into each type of owner of Shanghai Menon Animal Nutrition Technology, beginning with the chart below.

See our latest analysis for Shanghai Menon Animal Nutrition Technology

ownership-breakdown
SZSE:301156 Ownership Breakdown February 26th 2024

What Does The Institutional Ownership Tell Us About Shanghai Menon Animal Nutrition 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.

Since institutions own only a small portion of Shanghai Menon Animal Nutrition Technology, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

earnings-and-revenue-growth
SZSE:301156 Earnings and Revenue Growth February 26th 2024

Shanghai Menon Animal Nutrition Technology is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Shanghai Menon Animal Nutrition Technology's case, its Senior Key Executive, Wei Hong, is the largest shareholder, holding 38% of shares outstanding. With 12% and 7.1% of the shares outstanding respectively, Ling Tang and Shanghai Quanyu Investment Management Office (Limited Partnership) are the second and third largest shareholders.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Shanghai Menon Animal Nutrition 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems that insiders own more than half the Shanghai Menon Animal Nutrition Technology Co., Ltd. stock. This gives them a lot of power. That means they own CN¥1.0b worth of shares in the CN¥1.6b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 28% stake in Shanghai Menon Animal Nutrition Technology. 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 7.1%, of the Shanghai Menon Animal Nutrition Technology stock. 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:

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 2 warning signs we've spotted with Shanghai Menon Animal Nutrition Technology .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Shanghai Menon Animal Nutrition Technology is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.