Hoshine Silicon Industry Co., Ltd.'s (SHSE:603260) stock price dropped 4.5% last week; private companies would not be happy

Key Insights

• The considerable ownership by private companies in Hoshine Silicon Industry indicates that they collectively have a greater say in management and business strategy
• 63% of the business is held by the top 2 shareholders
• Insiders own 33% of Hoshine Silicon Industry

Every investor in Hoshine Silicon Industry Co., Ltd. (SHSE:603260) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 51% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 4.5% decrease in the stock price last week, private companies suffered the most losses, but insiders who own 33% stock also took a hit.

Let's delve deeper into each type of owner of Hoshine Silicon Industry, beginning with the chart below.

View our latest analysis for Hoshine Silicon Industry

What Does The Institutional Ownership Tell Us About Hoshine Silicon Industry?

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.

Since institutions own only a small portion of Hoshine Silicon Industry, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Hoshine Silicon Industry. Our data shows that Ningbo Hoshine Group Co., Ltd. is the largest shareholder with 47% of shares outstanding. With 16% and 15% of the shares outstanding respectively, Yi Luo and Yedong Luo are the second and third largest shareholders. Yedong Luo, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

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 Hoshine Silicon Industry

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Hoshine Silicon Industry Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥21b stake in this CN¥63b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 14% stake in Hoshine Silicon Industry. 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

It seems that Private Companies own 51%, of the Hoshine Silicon Industry stock. 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 Hoshine Silicon Industry better, we need to consider many other factors. For example, we've discovered 3 warning signs for Hoshine Silicon Industry (1 is concerning!) that you should be aware of before investing here.

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.