Retail investors among Changchun High-Tech Industry (Group) Co., Ltd.'s (SZSE:000661) largest stockholders and were hit after last week's 3.4% price drop

Key Insights

• Changchun High-Tech Industry (Group)'s significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 25 investors have a majority stake in the company with 43% ownership
• 16% of Changchun High-Tech Industry (Group) is held by Institutions

Every investor in Changchun High-Tech Industry (Group) Co., Ltd. (SZSE:000661) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, retail investors endured the biggest losses as the stock fell by 3.4%.

In the chart below, we zoom in on the different ownership groups of Changchun High-Tech Industry (Group).

Check out our latest analysis for Changchun High-Tech Industry (Group)

What Does The Institutional Ownership Tell Us About Changchun High-Tech Industry (Group)?

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.

Changchun High-Tech Industry (Group) already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Changchun High-Tech Industry (Group)'s earnings history below. Of course, the future is what really matters.

Changchun High-Tech Industry (Group) is not owned by hedge funds. Our data shows that Changchun Hi-tech Investment Co., Ltd is the largest shareholder with 19% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.5% and 1.9%, of the shares outstanding, respectively.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Changchun High-Tech Industry (Group)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We can report that insiders do own shares in Changchun High-Tech Industry (Group) Co., Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥3.7b worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public -- including retail investors -- own 56% of Changchun High-Tech Industry (Group). This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

It seems that Private Companies own 19%, of the Changchun High-Tech Industry (Group) stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Changchun High-Tech Industry (Group) better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.