Shenzhen Batian Ecotypic Engineering Co., Ltd. (SZSE:002170) surges 17%; individual investors who own 56% shares profited along with insiders

Key Insights

• Shenzhen Batian Ecotypic Engineering's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 25 shareholders own 44% of the company
• 37% of Shenzhen Batian Ecotypic Engineering is held by insiders

To get a sense of who is truly in control of Shenzhen Batian Ecotypic Engineering Co., Ltd. (SZSE:002170), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that reaped the most benefits after last week’s 17% price gain, insiders also received a 37% cut.

Let's take a closer look to see what the different types of shareholders can tell us about Shenzhen Batian Ecotypic Engineering.

Check out our latest analysis for Shenzhen Batian Ecotypic Engineering

What Does The Institutional Ownership Tell Us About Shenzhen Batian Ecotypic Engineering?

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.

As you can see, institutional investors have a fair amount of stake in Shenzhen Batian Ecotypic Engineering. 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 Shenzhen Batian Ecotypic Engineering's earnings history below. Of course, the future is what really matters.

Shenzhen Batian Ecotypic Engineering is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Peizhao Huang with 27% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.1% and 3.4% of the stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Shenzhen Batian Ecotypic Engineering

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems insiders own a significant proportion of Shenzhen Batian Ecotypic Engineering Co., Ltd.. It has a market capitalization of just CN¥6.0b, and insiders have CN¥2.2b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 56% stake in Shenzhen Batian Ecotypic Engineering, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

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. To that end, you should learn about the 2 warning signs we've spotted with Shenzhen Batian Ecotypic Engineering (including 1 which is significant) .

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.