Qing Shi Motorcomm Electronic Technology Co., Ltd.'s (SHSE:688515) CEO is the most bullish insider, and their stock value gained 11%last week

Key Insights

• Significant insider control over Motorcomm Electronic Technology implies vested interests in company growth
• The top 7 shareholders own 52% of the company
• 21% of Motorcomm Electronic Technology is held by Institutions

Every investor in Motorcomm Electronic Technology Co., Ltd. (SHSE:688515) should be aware of the most powerful shareholder groups. With 32% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 11% gain.

In the chart below, we zoom in on the different ownership groups of Motorcomm Electronic Technology.

Check out our latest analysis for Motorcomm Electronic Technology

What Does The Institutional Ownership Tell Us About Motorcomm Electronic 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.

We can see that Motorcomm Electronic Technology 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. 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 Motorcomm Electronic Technology's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Motorcomm Electronic Technology. Looking at our data, we can see that the largest shareholder is the CEO Qing Shi with 12% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 10% and 9.2%, of the shares outstanding, respectively. Interestingly, the third-largest shareholder, Yufei Ouyang is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

We did some more digging and found that 7 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Motorcomm Electronic Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Motorcomm Electronic Technology Co., Ltd.. Insiders own CN¥2.0b worth of shares in the CN¥6.0b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in Motorcomm Electronic Technology. 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 Equity Ownership

With a stake of 7.0%, private equity firms could influence the Motorcomm Electronic Technology board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

It seems that Private Companies own 13%, of the Motorcomm Electronic Technology stock. 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 Motorcomm Electronic Technology better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Motorcomm Electronic Technology .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.