Chipsea Technologies (shenzhen) Corp. (SHSE:688595) surges 12%; retail investors who own 33% shares profited along with insiders

Key Insights

• Significant control over Chipsea Technologies (shenzhen) by retail investors implies that the general public has more power to influence management and governance-related decisions
• 52% of the business is held by the top 6 shareholders
• Insider ownership in Chipsea Technologies (shenzhen) is 28%

If you want to know who really controls Chipsea Technologies (shenzhen) Corp. (SHSE:688595), then you'll have to look at the makeup of its share registry. With 33% stake, retail investors 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).

While retail investors were the group that benefitted the most from last week’s CN¥454m market cap gain, insiders too had a 28% share in those profits.

In the chart below, we zoom in on the different ownership groups of Chipsea Technologies (shenzhen).

View our latest analysis for Chipsea Technologies (shenzhen)

What Does The Institutional Ownership Tell Us About Chipsea Technologies (shenzhen)?

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.

Chipsea Technologies (shenzhen) 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 Chipsea Technologies (shenzhen), (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Chipsea Technologies (shenzhen). With a 28% stake, CEO Guojian Lu is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 14% and 2.8%, of the shares outstanding, respectively.

We did some more digging and found that 6 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.

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

Insider Ownership Of Chipsea Technologies (shenzhen)

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

It seems insiders own a significant proportion of Chipsea Technologies (shenzhen) Corp.. It has a market capitalization of just CN¥4.4b, and insiders have CN¥1.2b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 33% stake in the company, and hence can't easily be ignored. 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 14%, of the company's shares. 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 Chipsea Technologies (shenzhen) better, we need to consider many other factors. Take risks for example - Chipsea Technologies (shenzhen) has 1 warning sign we think you should be aware of.

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.