Shanghai Sunglow Packaging Technology Co.,Ltd's (SHSE:603499) CEO Jian Jun Dong is the most upbeat insider, and their holdings increased by 12% last week

Key Insights

• Insiders appear to have a vested interest in Shanghai Sunglow Packaging TechnologyLtd's growth, as seen by their sizeable ownership
• A total of 2 investors have a majority stake in the company with 57% ownership
• Institutions own 17% of Shanghai Sunglow Packaging TechnologyLtd

Every investor in Shanghai Sunglow Packaging Technology Co.,Ltd (SHSE:603499) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders 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).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥339m last week.

In the chart below, we zoom in on the different ownership groups of Shanghai Sunglow Packaging TechnologyLtd.

See our latest analysis for Shanghai Sunglow Packaging TechnologyLtd

What Does The Institutional Ownership Tell Us About Shanghai Sunglow Packaging 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.

Shanghai Sunglow Packaging TechnologyLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Shanghai Sunglow Packaging TechnologyLtd's earnings history below. Of course, the future is what really matters.

Shanghai Sunglow Packaging TechnologyLtd is not owned by hedge funds. With a 49% stake, CEO Jian Jun Dong is the largest shareholder. With 8.1% and 5.6% of the shares outstanding respectively, Shanghai Muxin Private Fund Management Co., Ltd. and Shirong Miao are the second and third largest shareholders.

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 studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Shanghai Sunglow Packaging TechnologyLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Shanghai Sunglow Packaging Technology Co.,Ltd stock. This gives them a lot of power. So they have a CN¥1.8b stake in this CN¥3.3b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shanghai Sunglow Packaging TechnologyLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. For instance, we've identified 4 warning signs for Shanghai Sunglow Packaging TechnologyLtd (1 doesn't sit too well with us) that you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.