Recent uptick might appease Advanced Micro-Fabrication Equipment Inc. China (SHSE:688012) institutional owners after losing 6.3% over the past year

Key Insights

• Given the large stake in the stock by institutions, Advanced Micro-Fabrication Equipment China's stock price might be vulnerable to their trading decisions
• A total of 12 investors have a majority stake in the company with 51% ownership
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in Advanced Micro-Fabrication Equipment Inc. China (SHSE:688012) should be aware of the most powerful shareholder groups. With 40% stake, institutions 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).

Last week's CN¥5.0b market cap gain would probably be appreciated by institutional investors, especially after a year of 6.3% losses.

Let's delve deeper into each type of owner of Advanced Micro-Fabrication Equipment China, beginning with the chart below.

Check out our latest analysis for Advanced Micro-Fabrication Equipment China

What Does The Institutional Ownership Tell Us About Advanced Micro-Fabrication Equipment China?

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.

Advanced Micro-Fabrication Equipment China 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 Advanced Micro-Fabrication Equipment China's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Advanced Micro-Fabrication Equipment China. Looking at our data, we can see that the largest shareholder is Shanghai Venture Capital Co., Ltd. with 15% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 13% and 6.1%, of the shares outstanding, respectively. Furthermore, CEO Gerald Zheyao Yin is the owner of 0.7% of the company's shares.

A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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 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 Advanced Micro-Fabrication Equipment China

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

We can see that insiders own shares in Advanced Micro-Fabrication Equipment Inc. China. It is a very large company, and board members collectively own CN¥1.7b worth of shares (at current prices). Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Advanced Micro-Fabrication Equipment China. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 15% stake in Advanced Micro-Fabrication Equipment China. This suggests they can be influential in key policy decisions. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

We can see that Private Companies own 17%, of the shares on issue. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Advanced Micro-Fabrication Equipment China , and understanding them should be part of your investment process.

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.