With a 56% stake, Shenzhen Mindray Bio-Medical Electronics Co., Ltd. (SZSE:300760) insiders have a lot riding on the company

Key Insights

• Significant insider control over Shenzhen Mindray Bio-Medical Electronics implies vested interests in company growth
• The top 2 shareholders own 52% of the company
• 19% of Shenzhen Mindray Bio-Medical Electronics is held by Institutions

If you want to know who really controls Shenzhen Mindray Bio-Medical Electronics Co., Ltd. (SZSE:300760), 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 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

In the chart below, we zoom in on the different ownership groups of Shenzhen Mindray Bio-Medical Electronics.

View our latest analysis for Shenzhen Mindray Bio-Medical Electronics

What Does The Institutional Ownership Tell Us About Shenzhen Mindray Bio-Medical Electronics?

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.

We can see that Shenzhen Mindray Bio-Medical Electronics does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Shenzhen Mindray Bio-Medical Electronics' earnings history below. Of course, the future is what really matters.

Shenzhen Mindray Bio-Medical Electronics is not owned by hedge funds. Xiting Li is currently the largest shareholder, with 27% of shares outstanding. With 25% and 4.3% of the shares outstanding respectively, Hang Xu and Cheng Minghe are the second and third largest shareholders. Cheng Minghe, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Shenzhen Mindray Bio-Medical Electronics

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 that insiders own more than half the Shenzhen Mindray Bio-Medical Electronics Co., Ltd. stock. This gives them a lot of power. Given it has a market cap of CN¥341b, that means insiders have a whopping CN¥191b worth of shares in their own names. 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

The general public, who are usually individual investors, hold a 21% stake in Shenzhen Mindray Bio-Medical Electronics. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 3.7%, 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Shenzhen Mindray Bio-Medical Electronics you should be aware of.

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