Retail investors invested in Toyou Feiji Electronics Co., Ltd. (SZSE:300302) up 6.4% last week, insiders too were rewarded

Key Insights

• The considerable ownership by retail investors in Toyou Feiji Electronics indicates that they collectively have a greater say in management and business strategy
• 41% of the business is held by the top 20 shareholders
• 40% of Toyou Feiji Electronics is held by insiders

To get a sense of who is truly in control of Toyou Feiji Electronics Co., Ltd. (SZSE:300302), it is important to understand the ownership structure of the business. With 59% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While retail investors were the group that benefitted the most from last week’s CN¥427m market cap gain, insiders too had a 40% share in those profits.

Let's take a closer look to see what the different types of shareholders can tell us about Toyou Feiji Electronics.

View our latest analysis for Toyou Feiji Electronics

What Does The Institutional Ownership Tell Us About Toyou Feiji Electronics?

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.

Less than 5% of Toyou Feiji Electronics is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

We note that hedge funds don't have a meaningful investment in Toyou Feiji Electronics. Looking at our data, we can see that the largest shareholder is the CEO Zhou Zexiang with 17% of shares outstanding. With 11% and 8.4% of the shares outstanding respectively, Yihong Tong and Yongsong Yang are the second and third largest shareholders.

On studying our ownership data, we found that 20 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Toyou Feiji Electronics

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 Toyou Feiji Electronics Co., Ltd.. Insiders own CN¥2.8b worth of shares in the CN¥7.0b company. 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, who are usually individual investors, hold a substantial 59% stake in Toyou Feiji Electronics, suggesting it is a fairly popular stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Toyou Feiji Electronics better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Toyou Feiji Electronics (including 1 which is significant) .

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.