ShenZhen YUTO Packaging Technology Co., Ltd.'s (SZSE:002831) most bullish insider, Senior Key Executive Lanlan Wu must be pleased with the recent 4.8% gain

Key Insights

• ShenZhen YUTO Packaging Technology's significant insider ownership suggests inherent interests in company's expansion
• A total of 2 investors have a majority stake in the company with 60% ownership
• Institutions own 15% of ShenZhen YUTO Packaging Technology

Every investor in ShenZhen YUTO Packaging Technology Co., Ltd. (SZSE:002831) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 60% 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.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥1.1b last week.

Let's take a closer look to see what the different types of shareholders can tell us about ShenZhen YUTO Packaging Technology.

See our latest analysis for ShenZhen YUTO Packaging Technology

What Does The Institutional Ownership Tell Us About ShenZhen YUTO Packaging Technology?

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.

ShenZhen YUTO Packaging Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of ShenZhen YUTO Packaging Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in ShenZhen YUTO Packaging Technology. Our data suggests that Lanlan Wu, who is also the company's Senior Key Executive, holds the most number of shares at 49%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 3.7% by the third-largest shareholder. Interestingly, the second-largest shareholder, Huajun Wang is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 ShenZhen YUTO Packaging Technology

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.

Our information suggests that insiders own more than half of ShenZhen YUTO Packaging Technology Co., Ltd.. This gives them effective control of the company. Given it has a market cap of CN¥24b, that means insiders have a whopping CN¥14b worth of shares in their own names. 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

The general public, who are usually individual investors, hold a 21% stake in ShenZhen YUTO Packaging Technology. 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. Take risks for example - ShenZhen YUTO Packaging Technology 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.