The recent 8.8% gain must have brightened CEO Chuang Jin's week, Jiangsu Sidike New Materials Science & Technology Co., Ltd.'s (SZSE:300806) most bullish insider

Key Insights

• Insiders appear to have a vested interest in Jiangsu Sidike New Materials Science & Technology's growth, as seen by their sizeable ownership
• The top 7 shareholders own 51% of the company
• 17% of Jiangsu Sidike New Materials Science & Technology is held by Institutions

A look at the shareholders of Jiangsu Sidike New Materials Science & Technology Co., Ltd. (SZSE:300806) can tell us which group is most powerful. With 40% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥367m 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.

View 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 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 Jiangsu Sidike New Materials Science & Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Jiangsu Sidike New Materials Science & Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Chuang Jin with 33% 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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Jiangsu Sidike New Materials 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.

It seems insiders own a significant proportion of Jiangsu Sidike New Materials Science & Technology Co., Ltd.. Insiders own CN¥1.8b worth of shares in the CN¥4.5b 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, who are usually individual investors, hold a 39% stake in Jiangsu Sidike New Materials Science & Technology. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu Sidike New Materials Science & Technology better, we need to consider many other factors. Be aware that Jiangsu Sidike New Materials Science & Technology is showing 4 warning signs in our investment analysis , and 1 of those is concerning...

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.