Retail investors who hold 50% of Shenzhen InfoGem Technologies Co., Ltd. (SZSE:300085) gained 5.2%, insiders profited as well

Key Insights

• Shenzhen InfoGem Technologies' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 25 investors have a majority stake in the company with 49% ownership
• 44% of Shenzhen InfoGem Technologies is held by insiders

Every investor in Shenzhen InfoGem Technologies Co., Ltd. (SZSE:300085) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 50% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 5.2% increase in the stock price last week, retail investors profited the most, but insiders who own 44% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Shenzhen InfoGem Technologies.

See our latest analysis for Shenzhen InfoGem Technologies

What Does The Institutional Ownership Tell Us About Shenzhen InfoGem Technologies?

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.

Since institutions own only a small portion of Shenzhen InfoGem Technologies, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Shenzhen InfoGem Technologies is not owned by hedge funds. Ye He is currently the company's largest shareholder with 13% of shares outstanding. With 12% and 7.0% of the shares outstanding respectively, Xuejun Zhang and Haihang Zhuo are the second and third largest shareholders. Additionally, the company's CEO Jun Li directly holds 4.9% of the total shares outstanding.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 Shenzhen InfoGem Technologies

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.

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 Shenzhen InfoGem Technologies Co., Ltd.. It has a market capitalization of just CN¥34b, and insiders have CN¥15b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public -- including retail investors -- own 50% of Shenzhen InfoGem Technologies. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Shenzhen InfoGem Technologies you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.