Retail investors among Shanghai Amarsoft Information & Technology Co.,Ltd's (SZSE:300380) largest stockholders and were hit after last week's 12% price drop

Key Insights

• The considerable ownership by retail investors in Shanghai Amarsoft Information & TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 9 shareholders
• 20% of Shanghai Amarsoft Information & TechnologyLtd is held by insiders

To get a sense of who is truly in control of Shanghai Amarsoft Information & Technology Co.,Ltd (SZSE:300380), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 12% decline in share price, retail investors suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Shanghai Amarsoft Information & TechnologyLtd.

Check out our latest analysis for Shanghai Amarsoft Information & TechnologyLtd

What Does The Institutional Ownership Tell Us About Shanghai Amarsoft 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.

Less than 5% of Shanghai Amarsoft Information & TechnologyLtd 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. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Shanghai Amarsoft Information & TechnologyLtd. The company's largest shareholder is Shanghai Amarsoft Technology Development Co., Ltd., with ownership of 29%. Yong Gao is the second largest shareholder owning 7.3% of common stock, and Ming Gao holds about 7.0% of the company stock. Yong Gao, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 Shanghai Amarsoft Information & TechnologyLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Shanghai Amarsoft Information & Technology Co.,Ltd. Insiders own CN¥383m worth of shares in the CN¥1.9b 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

With a 46% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shanghai Amarsoft Information & TechnologyLtd. 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

It seems that Private Companies own 29%, of the Shanghai Amarsoft Information & TechnologyLtd stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Shanghai Amarsoft Information & TechnologyLtd better, we need to consider many other factors. Take risks for example - Shanghai Amarsoft Information & TechnologyLtd has 2 warning signs (and 1 which is significant) we think you should know about.

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.