Retail investors among Guangdong Transtek Medical Electronics Co., Ltd's (SZSE:300562) largest stockholders and were hit after last week's 16% price drop

Key Insights

• Guangdong Transtek Medical Electronics' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 25 investors have a majority stake in the company with 45% ownership
• Insiders own 36% of Guangdong Transtek Medical Electronics

A look at the shareholders of Guangdong Transtek Medical Electronics Co., Ltd (SZSE:300562) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 54% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders who own 36% came under pressure after market cap dropped to CN¥2.8b last week,retail investors took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Guangdong Transtek Medical Electronics.

See our latest analysis for Guangdong Transtek Medical Electronics

What Does The Institutional Ownership Tell Us About Guangdong Transtek Medical Electronics?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Guangdong Transtek Medical Electronics. 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 Guangdong Transtek Medical Electronics' earnings history below. Of course, the future is what really matters.

Guangdong Transtek Medical Electronics is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Wei Chao Pan with 33% of shares outstanding. For context, the second largest shareholder holds about 1.1% of the shares outstanding, followed by an ownership of 1.0% by the third-largest shareholder.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Guangdong Transtek Medical Electronics

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Guangdong Transtek Medical Electronics Co., Ltd. It has a market capitalization of just CN¥2.8b, and insiders have CN¥1.0b worth of shares in their own names. 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

The general public -- including retail investors -- own 54% of Guangdong Transtek Medical Electronics. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Guangdong Transtek Medical Electronics you should be aware of, and 1 of them makes us a bit uncomfortable.

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.