Shenzhen RongDa Photosensitive Science & Technology Co., Ltd. (SZSE:300576) adds CN¥420m in market cap and insiders have a 52% stake in that gain

Key Insights

• Shenzhen RongDa Photosensitive Science & Technology's significant insider ownership suggests inherent interests in company's expansion
• The top 6 shareholders own 50% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Shenzhen RongDa Photosensitive Science & Technology Co., Ltd. (SZSE:300576) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 52% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 3.9% gain.

Let's delve deeper into each type of owner of Shenzhen RongDa Photosensitive Science & Technology, beginning with the chart below.

Check out our latest analysis for Shenzhen RongDa Photosensitive Science & Technology

What Does The Institutional Ownership Tell Us About Shenzhen RongDa Photosensitive Science & Technology?

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.

Shenzhen RongDa Photosensitive Science & Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 RongDa Photosensitive Science & Technology, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Shenzhen RongDa Photosensitive Science & Technology. Hai Wang Lin is currently the company's largest shareholder with 13% of shares outstanding. Yu Chun Yang is the second largest shareholder owning 12% of common stock, and Yong Huang holds about 11% of the company stock. Yong Huang, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Shenzhen RongDa Photosensitive Science & 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.

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 RongDa Photosensitive Science & Technology Co., Ltd.. This means they can collectively make decisions for the company. That means insiders have a very meaningful CN¥5.8b stake in this CN¥11b 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

The general public, who are usually individual investors, hold a 39% stake in Shenzhen RongDa Photosensitive Science & 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Shenzhen RongDa Photosensitive Science & Technology better, we need to consider many other factors. Be aware that Shenzhen RongDa Photosensitive Science & Technology is showing 3 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com