Shaanxi Huaqin Technology Industry Co.,Ltd.'s (SHSE:688281) top holders are insiders and they are likely disappointed by the recent 5.9% drop

Key Insights

• Insiders appear to have a vested interest in Shaanxi Huaqin Technology IndustryLtd's growth, as seen by their sizeable ownership
• 53% of the business is held by the top 5 shareholders
• 16% of Shaanxi Huaqin Technology IndustryLtd is held by Institutions

If you want to know who really controls Shaanxi Huaqin Technology Industry Co.,Ltd. (SHSE:688281), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 52% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders as a group endured the highest losses after market cap fell by CN¥1.1b.

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

See 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 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 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. Our data shows that Shengyang Zhe is the largest shareholder with 23% of shares outstanding. Wancheng Zhou is the second largest shareholder owning 11% of common stock, and Shaanxi Huaqin Wansheng Business Information Consulting Partnership Enterprise (Limited Partnership) holds about 8.1% of the company stock. Wancheng Zhou, who is the second-largest shareholder, also happens to hold the title of Chief Scientific Officer.

On looking further, we found that 53% 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.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Shaanxi Huaqin Technology IndustryLtd

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.

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.

Our information suggests that insiders own more than half of Shaanxi Huaqin Technology Industry Co.,Ltd.. This gives them effective control of the company. Insiders own CN¥9.4b worth of shares in the CN¥18b company. That's extraordinary! 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 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shaanxi Huaqin Technology IndustryLtd. 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

It seems that Private Companies own 8.1%, of the Shaanxi Huaqin Technology IndustryLtd stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Shaanxi Huaqin Technology IndustryLtd , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.