Institutions profited after Shenzhen Kingkey Smart Agriculture Times Co.,Ltd's (SZSE:000048) market cap rose CN¥377m last week but private companies profited the most

Key Insights

• Significant control over Shenzhen Kingkey Smart Agriculture TimesLtd by private companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is KINGKEY GROUP CO., LTD. with a 57% stake
• Institutions own 22% of Shenzhen Kingkey Smart Agriculture TimesLtd

If you want to know who really controls Shenzhen Kingkey Smart Agriculture Times Co.,Ltd (SZSE:000048), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 57% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 5.1% increase in the stock price last week, private companies profited the most, but institutions who own 22% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of Shenzhen Kingkey Smart Agriculture TimesLtd.

Check out our latest analysis for Shenzhen Kingkey Smart Agriculture TimesLtd

What Does The Institutional Ownership Tell Us About Shenzhen Kingkey Smart Agriculture TimesLtd?

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.

Shenzhen Kingkey Smart Agriculture TimesLtd 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. 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 Shenzhen Kingkey Smart Agriculture TimesLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Shenzhen Kingkey Smart Agriculture TimesLtd. KINGKEY GROUP CO., LTD. is currently the largest shareholder, with 57% of shares outstanding. This implies that they have majority interest control of the future of the company. The second and third largest shareholders are Qianhai Pengcheng Wanli Capital Management (Shenzhen) Co., Ltd. and Zircon Private Securities Fund Management Hainan Co.,Ltd., with an equal amount of shares to their name at 4.9%.

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

Insider Ownership Of Shenzhen Kingkey Smart Agriculture TimesLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 data suggests that insiders own under 1% of Shenzhen Kingkey Smart Agriculture Times Co.,Ltd in their own names. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around CN¥23m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 21% stake in the company, and hence can't easily be ignored. 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.

Private Company Ownership

We can see that Private Companies own 57%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with Shenzhen Kingkey Smart Agriculture TimesLtd (including 2 which don't sit too well with us) .

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.

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