Private companies among Xi'an Peri Power Semiconductor Converting Technology Co.,Ltd.'s (SZSE:300831) largest stockholders and were hit after last week's 13% price drop

Key Insights

• The considerable ownership by private companies in Xi'an Peri Power Semiconductor Converting TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• The top 6 shareholders own 51% of the company
• Institutions own 15% of Xi'an Peri Power Semiconductor Converting TechnologyLtd

To get a sense of who is truly in control of Xi'an Peri Power Semiconductor Converting Technology Co.,Ltd. (SZSE:300831), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 44% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 13% decline in share price, private companies suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Xi'an Peri Power Semiconductor Converting TechnologyLtd.

See our latest analysis for Xi'an Peri Power Semiconductor Converting TechnologyLtd

What Does The Institutional Ownership Tell Us About Xi'an Peri Power Semiconductor Converting TechnologyLtd?

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 Xi'an Peri Power Semiconductor Converting TechnologyLtd does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Xi'an Peri Power Semiconductor Converting TechnologyLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Xi'an Peri Power Semiconductor Converting TechnologyLtd. Our data shows that Xi'an Power Electronics Research Institute is the largest shareholder with 40% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 4.9% and 2.8%, of the shares outstanding, respectively.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Xi'an Peri Power Semiconductor Converting TechnologyLtd

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 data suggests that insiders own under 1% of Xi'an Peri Power Semiconductor Converting Technology Co.,Ltd. in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It seems the board members have no more than CN¥35m worth of shares in the CN¥3.7b company. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, who are usually individual investors, hold a 40% stake in Xi'an Peri Power Semiconductor Converting TechnologyLtd. 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

It seems that Private Companies own 44%, of the Xi'an Peri Power Semiconductor Converting TechnologyLtd 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:

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. Be aware that Xi'an Peri Power Semiconductor Converting TechnologyLtd is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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