Insiders the biggest winners as Dongguan Golden Sun Abrasives Co.,Ltd's (SZSE:300606) market cap rises to CN¥3.1b

Key Insights

• Insiders appear to have a vested interest in Dongguan Golden Sun AbrasivesLtd's growth, as seen by their sizeable ownership
• A total of 10 investors have a majority stake in the company with 51% ownership
• 15% of Dongguan Golden Sun AbrasivesLtd is held by Institutions

Every investor in Dongguan Golden Sun Abrasives Co.,Ltd (SZSE:300606) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 43% ownership. 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¥632m last week.

Let's delve deeper into each type of owner of Dongguan Golden Sun AbrasivesLtd, beginning with the chart below.

View our latest analysis for Dongguan Golden Sun AbrasivesLtd

What Does The Institutional Ownership Tell Us About Dongguan Golden Sun AbrasivesLtd?

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.

We can see that Dongguan Golden Sun AbrasivesLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Dongguan Golden Sun AbrasivesLtd's earnings history below. Of course, the future is what really matters.

Dongguan Golden Sun AbrasivesLtd is not owned by hedge funds. Xiu Ying Hu is currently the company's largest shareholder with 20% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 17% and 4.0%, of the shares outstanding, respectively. Lu Yang, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

We also observed that the top 10 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 Dongguan Golden Sun AbrasivesLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 most recent data indicates that insiders own a reasonable proportion of Dongguan Golden Sun Abrasives Co.,Ltd. Insiders have a CN¥1.4b stake in this CN¥3.1b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 42% stake in Dongguan Golden Sun AbrasivesLtd. 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 Dongguan Golden Sun AbrasivesLtd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Dongguan Golden Sun AbrasivesLtd (at least 3 which shouldn't be ignored) , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

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

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.