Insiders with their considerable ownership were the key benefactors as UCAP Cloud Information Technology Co.,Ltd. (SHSE:688228) touches CN¥2.0b market cap

Key Insights

• Significant insider control over UCAP Cloud Information TechnologyLtd implies vested interests in company growth
• 57% of the business is held by the top 3 shareholders
• Institutional ownership in UCAP Cloud Information TechnologyLtd is 13%

To get a sense of who is truly in control of UCAP Cloud Information Technology Co.,Ltd. (SHSE:688228), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 32% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit CN¥2.0b market cap following a 11% gain in the stock.

In the chart below, we zoom in on the different ownership groups of UCAP Cloud Information TechnologyLtd.

View our latest analysis for UCAP Cloud Information TechnologyLtd

What Does The Institutional Ownership Tell Us About UCAP Cloud Information 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 UCAP Cloud Information TechnologyLtd does have institutional investors; and they hold a good portion of the company's stock. 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 UCAP Cloud Information TechnologyLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in UCAP Cloud Information TechnologyLtd. Our data shows that Min Wang is the largest shareholder with 28% of shares outstanding. With 19% and 9.6% of the shares outstanding respectively, Dongguan Municipal Government Computer Technology Co., Ltd. and Beijing Qinghan Culture Communication Co., Ltd. are the second and third largest shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 UCAP Cloud Information 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 information suggests that insiders maintain a significant holding in UCAP Cloud Information Technology Co.,Ltd.. Insiders have a CN¥634m stake in this CN¥2.0b business. 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 24% 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 31%, 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:

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 2 warning signs with UCAP Cloud Information TechnologyLtd (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.

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.