Fujian Raynen Technology Co., Ltd.'s (SHSE:603933) market cap increased by CN¥809m, insiders receive a 63% cut

Key Insights

• Fujian Raynen Technology's significant insider ownership suggests inherent interests in company's expansion
• Wei Jian Yang owns 63% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Fujian Raynen Technology Co., Ltd. (SHSE:603933) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 63% 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 were the biggest beneficiaries of last week’s 27% gain.

In the chart below, we zoom in on the different ownership groups of Fujian Raynen Technology.

View our latest analysis for Fujian Raynen Technology

What Does The Institutional Ownership Tell Us About Fujian Raynen Technology?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Less than 5% of Fujian Raynen Technology is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Fujian Raynen Technology is not owned by hedge funds. The company's largest shareholder is Wei Jian Yang, with ownership of 63%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 4.6% and 0.5% of the shares outstanding respectively, Pingtan Jierun Equity Investment Management Partnership Enterprise (Limited Partnership) and JPMorgan Chase & Co, Brokerage and Securities Investments are the second and third largest shareholders.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Fujian Raynen Technology

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.

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.

Our information suggests that insiders own more than half of Fujian Raynen Technology Co., Ltd.. This gives them effective control of the company. So they have a CN¥2.4b stake in this CN¥3.8b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Fujian Raynen Technology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 4.6%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

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

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.