Jiangsu Sidike New Materials Science & Technology Co., Ltd.'s (SZSE:300806) CEO Chuang Jin is the most upbeat insider, and their holdings increased by 14% last week

Key Insights

• Jiangsu Sidike New Materials Science & Technology's significant insider ownership suggests inherent interests in company's expansion
• The top 7 shareholders own 51% of the company
• Institutions own 16% of Jiangsu Sidike New Materials Science & Technology

To get a sense of who is truly in control of Jiangsu Sidike New Materials Science & Technology Co., Ltd. (SZSE:300806), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 41% ownership. 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¥775m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangsu Sidike New Materials Science & Technology.

See our latest analysis for Jiangsu Sidike New Materials Science & Technology

What Does The Institutional Ownership Tell Us About Jiangsu Sidike New Materials Science & Technology?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Jiangsu Sidike New Materials Science & Technology does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Jiangsu Sidike New Materials Science & Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiangsu Sidike New Materials Science & Technology is not owned by hedge funds. The company's CEO Chuang Jin is the largest shareholder with 34% of shares outstanding. Rong Shi is the second largest shareholder owning 5.2% of common stock, and Shanghai Yuanpan Investment Co., Ltd. holds about 3.6% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Jiangsu Sidike New Materials Science & Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of Jiangsu Sidike New Materials Science & Technology Co., Ltd.. Insiders own CN¥2.7b worth of shares in the CN¥6.5b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 41% stake in the company, and hence can't easily be ignored. 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. For instance, we've identified 4 warning signs for Jiangsu Sidike New Materials Science & Technology (1 shouldn't be ignored) that 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.