Zhejiang Huangma Technology Co.,Ltd's (SHSE:603181) market cap increased by CN¥610m, insiders receive a 29% cut

Key Insights

• Zhejiang Huangma TechnologyLtd's significant insider ownership suggests inherent interests in company's expansion
• 53% of the business is held by the top 7 shareholders
• 17% of Zhejiang Huangma TechnologyLtd is held by Institutions

If you want to know who really controls Zhejiang Huangma Technology Co.,Ltd (SHSE:603181), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 29% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥610m last week.

Let's delve deeper into each type of owner of Zhejiang Huangma TechnologyLtd, beginning with the chart below.

See our latest analysis for Zhejiang Huangma TechnologyLtd

What Does The Institutional Ownership Tell Us About Zhejiang Huangma TechnologyLtd?

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.

Zhejiang Huangma TechnologyLtd 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 Zhejiang Huangma TechnologyLtd's earnings history below. Of course, the future is what really matters.

Zhejiang Huangma TechnologyLtd is not owned by hedge funds. Wei Song Wang is currently the company's largest shareholder with 20% of shares outstanding. Zhejiang Huangma Holding Group Co., Ltd. is the second largest shareholder owning 10% of common stock, and Shaoxing Shirong Baosheng Investment Management Partnership Enterprise (Limited Partnership) holds about 7.7% of the company stock.

We did some more digging and found that 7 of the top shareholders account for roughly 53% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Zhejiang Huangma TechnologyLtd

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. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Zhejiang Huangma Technology Co.,Ltd. It has a market capitalization of just CN¥7.0b, and insiders have CN¥2.0b 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 29% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 22%, 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 Zhejiang Huangma TechnologyLtd better, we need to consider many other factors. Take risks for example - Zhejiang Huangma TechnologyLtd has 1 warning sign we think you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.