The recent CN¥443m market cap decrease is likely to have disappointed insiders invested in UCAP Cloud Information Technology Co.,Ltd. (SHSE:688228)

Key Insights

• Insiders appear to have a vested interest in UCAP Cloud Information TechnologyLtd's growth, as seen by their sizeable ownership
• 56% of the business is held by the top 3 shareholders
• 13% of UCAP Cloud Information TechnologyLtd is held by Institutions

If you want to know who really controls UCAP Cloud Information Technology Co.,Ltd. (SHSE:688228), then you'll have to look at the makeup of its share registry. With 31% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 14% decline in share price, insiders suffered the most losses.

Let's delve deeper into each type of owner of UCAP Cloud Information TechnologyLtd, beginning with the chart below.

See our latest analysis for UCAP Cloud Information TechnologyLtd

What Does The Institutional Ownership Tell Us About UCAP Cloud Information TechnologyLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in UCAP Cloud Information TechnologyLtd. 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. Min Wang is currently the largest shareholder, with 28% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 19% and 9.5%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

It seems insiders own a significant proportion of UCAP Cloud Information Technology Co.,Ltd.. It has a market capitalization of just CN¥2.6b, and insiders have CN¥819m worth of shares in their own names. 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-- including retail investors -- own 24% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 31%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for UCAP Cloud Information TechnologyLtd you should be aware of, and 1 of them doesn't sit too well with us.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.