Aidite (Qinhuangdao) Technology Co., Ltd. (SZSE:301580) surges 16%; individual investors who own 35% shares profited along with insiders

Key Insights

• The considerable ownership by individual investors in Aidite (Qinhuangdao) Technology indicates that they collectively have a greater say in management and business strategy
• The top 5 shareholders own 52% of the company
• 29% of Aidite (Qinhuangdao) Technology is held by insiders

Every investor in Aidite (Qinhuangdao) Technology Co., Ltd. (SZSE:301580) should be aware of the most powerful shareholder groups. With 35% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 16% increase in the stock price last week, individual investors profited the most, but insiders who own 29% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Aidite (Qinhuangdao) Technology, beginning with the chart below.

See our latest analysis for Aidite (Qinhuangdao) Technology

What Does The Institutional Ownership Tell Us About Aidite (Qinhuangdao) 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.

Aidite (Qinhuangdao) 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. 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 Aidite (Qinhuangdao) Technology, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Aidite (Qinhuangdao) Technology. Our data shows that Hongwen Li is the largest shareholder with 18% of shares outstanding. In comparison, the second and third largest shareholders hold about 13% and 11% of the stock.

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.

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. 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 Aidite (Qinhuangdao) Technology

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.

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.

Our information suggests that insiders maintain a significant holding in Aidite (Qinhuangdao) Technology Co., Ltd.. Insiders own CN¥1.2b worth of shares in the CN¥4.1b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 35% stake in Aidite (Qinhuangdao) Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 19% stake in Aidite (Qinhuangdao) Technology. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

We can see that Private Companies own 7.8%, of the shares on issue. 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 Aidite (Qinhuangdao) 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 access this interactive graph of past earnings, revenue and cash flow, for free.

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.

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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.