Individual investors who hold 42% of Sino Medical Sciences Technology Inc. (SHSE:688108) gained 11%, insiders profited as well

Key Insights

• The considerable ownership by individual investors in Sino Medical Sciences Technology indicates that they collectively have a greater say in management and business strategy
• A total of 15 investors have a majority stake in the company with 51% ownership
• 28% of Sino Medical Sciences Technology is held by insiders

If you want to know who really controls Sino Medical Sciences Technology Inc. (SHSE:688108), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched CN¥3.5b last week, while insiders who own 28% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about Sino Medical Sciences Technology.

See our latest analysis for Sino Medical Sciences Technology

What Does The Institutional Ownership Tell Us About Sino Medical Sciences Technology?

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.

Sino Medical Sciences Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Sino Medical Sciences Technology's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Sino Medical Sciences Technology. Looking at our data, we can see that the largest shareholder is the CEO Jianhua Sun with 20% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.2% and 5.3%, of the shares outstanding, respectively.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 15 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Sino Medical Sciences Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

It seems insiders own a significant proportion of Sino Medical Sciences Technology Inc.. Insiders have a CN¥977m stake in this CN¥3.5b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 42% stake in Sino Medical Sciences 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

Our data indicates that Private Companies hold 8.2%, 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 Sino Medical Sciences Technology better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

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