The recent 26% gain must have brightened Senior Key Executive Lanlan Wu's week, ShenZhen YUTO Packaging Technology Co., Ltd.'s (SZSE:002831) most bullish insider

Key Insights

• Significant insider control over ShenZhen YUTO Packaging Technology implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 60% ownership
• Institutional ownership in ShenZhen YUTO Packaging Technology is 15%

If you want to know who really controls ShenZhen YUTO Packaging Technology Co., Ltd. (SZSE:002831), then you'll have to look at the makeup of its share registry. With 60% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥4.8b last week.

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

View 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. 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 YUTO Packaging Technology's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in ShenZhen YUTO Packaging Technology. From our data, we infer that the largest shareholder is Lanlan Wu (who also holds the title of Senior Key Executive) with 49% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. In comparison, the second and third largest shareholders hold about 11% and 3.7% of the stock. Interestingly, the second-largest shareholder, Huajun Wang is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 60% stake.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own the majority of ShenZhen YUTO Packaging Technology Co., Ltd.. This means they can collectively make decisions for 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. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. 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.

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.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.