Haoyun Technologies Co.,Ltd. (SZSE:300448) surges 12%; individual investors who own 59% shares profited along with insiders

Key Insights

• The considerable ownership by individual investors in Haoyun TechnologiesLtd indicates that they collectively have a greater say in management and business strategy
• The top 20 shareholders own 41% of the company
• 40% of Haoyun TechnologiesLtd is held by insiders

To get a sense of who is truly in control of Haoyun Technologies Co.,Ltd. (SZSE:300448), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 59% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that reaped the most benefits after last week’s 12% price gain, insiders also received a 40% cut.

Let's delve deeper into each type of owner of Haoyun TechnologiesLtd, beginning with the chart below.

View our latest analysis for Haoyun TechnologiesLtd

What Does The Institutional Ownership Tell Us About Haoyun TechnologiesLtd?

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.

Institutions have a very small stake in Haoyun TechnologiesLtd. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. 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.

Hedge funds don't have many shares in Haoyun TechnologiesLtd. Qing Jiang Mao is currently the company's largest shareholder with 29% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.5% and 3.0% of the stock. Hong Wen Lei, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

Our studies suggest that the top 20 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Haoyun TechnologiesLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Haoyun Technologies Co.,Ltd.. Insiders own CN¥1.4b worth of shares in the CN¥3.5b 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, mostly comprising of individual investors, collectively holds 59% of Haoyun TechnologiesLtd shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Haoyun TechnologiesLtd better, we need to consider many other factors. Be aware that Haoyun TechnologiesLtd is showing 2 warning signs in our investment analysis , you should know about...

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.