The recent 4.4% gain must have brightened CEO Hong Yan Lu's week, G-bits Network Technology (Xiamen) Co., Ltd.'s (SHSE:603444) most bullish insider

Key Insights

• Insiders appear to have a vested interest in G-bits Network Technology (Xiamen)'s growth, as seen by their sizeable ownership
• A total of 8 investors have a majority stake in the company with 50% ownership
• 13% of G-bits Network Technology (Xiamen) is held by Institutions

If you want to know who really controls G-bits Network Technology (Xiamen) Co., Ltd. (SHSE:603444), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 45% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit CN¥15b market cap following a 4.4% gain in the stock.

Let's delve deeper into each type of owner of G-bits Network Technology (Xiamen), beginning with the chart below.

View our latest analysis for G-bits Network Technology (Xiamen)

What Does The Institutional Ownership Tell Us About G-bits Network Technology (Xiamen)?

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.

We can see that G-bits Network Technology (Xiamen) 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. 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 G-bits Network Technology (Xiamen), (below). Of course, keep in mind that there are other factors to consider, too.

G-bits Network Technology (Xiamen) is not owned by hedge funds. The company's CEO Hong Yan Lu is the largest shareholder with 30% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 1.9% of the stock. Interestingly, the second-largest shareholder, Tuo Lin Chen is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

We did some more digging and found that 8 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 G-bits Network Technology (Xiamen)

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.

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 information suggests that insiders maintain a significant holding in G-bits Network Technology (Xiamen) Co., Ltd.. Insiders own CN¥6.8b worth of shares in the CN¥15b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand G-bits Network Technology (Xiamen) better, we need to consider many other factors. For example, we've discovered 1 warning sign for G-bits Network Technology (Xiamen) that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.