Individual investors in China Transinfo Technology Co., Ltd (SZSE:002373) are its biggest bettors, and their bets paid off as stock gained 5.6% last week

Key Insights

• The considerable ownership by individual investors in China Transinfo Technology indicates that they collectively have a greater say in management and business strategy
• A total of 13 investors have a majority stake in the company with 51% ownership
• 17% of China Transinfo Technology is held by insiders

To get a sense of who is truly in control of China Transinfo Technology Co., Ltd (SZSE:002373), it is important to understand the ownership structure of the business. With 46% stake, individual 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).

As a result, individual investors were the biggest beneficiaries of last week’s 5.6% gain.

Let's delve deeper into each type of owner of China Transinfo Technology, beginning with the chart below.

View our latest analysis for China Transinfo Technology

What Does The Institutional Ownership Tell Us About China Transinfo 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 China Transinfo 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. 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 China Transinfo Technology, (below). Of course, keep in mind that there are other factors to consider, too.

China Transinfo Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Shu Dong Xia with 15% of shares outstanding. Hangzhou Haoyue Enterprise Management Co., Ltd. is the second largest shareholder owning 14% of common stock, and Beijing Transinfo Group Co., Ltd. holds about 5.7% of the company stock.

A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of China Transinfo Technology

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.

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 China Transinfo Technology Co., Ltd. It is very interesting to see that insiders have a meaningful CN¥2.3b stake in this CN¥14b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 46% 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

We can see that Private Companies own 24%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand China Transinfo Technology better, we need to consider many other factors. For instance, we've identified 1 warning sign for China Transinfo Technology that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.