Recent 7.5% pullback would hurt Shaanxi Huaqin Technology Industry Co.,Ltd. (SHSE:688281) insiders

Key Insights

• Shaanxi Huaqin Technology IndustryLtd's significant insider ownership suggests inherent interests in company's expansion
• The top 4 shareholders own 55% of the company
• Institutions own 14% of Shaanxi Huaqin Technology IndustryLtd

A look at the shareholders of Shaanxi Huaqin Technology Industry Co.,Ltd. (SHSE:688281) can tell us which group is most powerful. With 59% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to CN¥17b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about Shaanxi Huaqin Technology IndustryLtd.

Check out our latest analysis for Shaanxi Huaqin Technology IndustryLtd

What Does The Institutional Ownership Tell Us About Shaanxi Huaqin Technology IndustryLtd?

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.

As you can see, institutional investors have a fair amount of stake in Shaanxi Huaqin Technology IndustryLtd. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Shaanxi Huaqin Technology IndustryLtd's earnings history below. Of course, the future is what really matters.

Shaanxi Huaqin Technology IndustryLtd is not owned by hedge funds. The company's largest shareholder is Shengyang Zhe, with ownership of 29%. With 11% and 8.1% of the shares outstanding respectively, Wancheng Zhou and Quanzhou Huaqin Wansheng Business Information Consulting Partnership (Limited Partnership) are the second and third largest shareholders. Wancheng Zhou, who is the second-largest shareholder, also happens to hold the title of Chief Scientific Officer.

On looking further, we found that 55% of the shares are owned by the top 4 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Shaanxi Huaqin Technology IndustryLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 own more than half of Shaanxi Huaqin Technology Industry Co.,Ltd.. This gives them effective control of the company. That means insiders have a very meaningful CN¥10b stake in this CN¥17b business. 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

With a 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shaanxi Huaqin Technology IndustryLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 8.1%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shaanxi Huaqin Technology IndustryLtd better, we need to consider many other factors. Take risks for example - Shaanxi Huaqin Technology IndustryLtd 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.