Insiders are the top stockholders in Hangzhou DPtech Technologies Co.,Ltd. (SZSE:300768), and the recent 13% drop might have disappointed them

Key Insights

• Insiders appear to have a vested interest in Hangzhou DPtech TechnologiesLtd's growth, as seen by their sizeable ownership
• 53% of the business is held by the top 2 shareholders
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

Every investor in Hangzhou DPtech Technologies Co.,Ltd. (SZSE:300768) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 53% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by CN¥1.5b.

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

View our latest analysis for Hangzhou DPtech TechnologiesLtd

What Does The Institutional Ownership Tell Us About Hangzhou DPtech TechnologiesLtd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Hangzhou DPtech TechnologiesLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Hangzhou DPtech TechnologiesLtd's earnings history below. Of course, the future is what really matters.

Hangzhou DPtech TechnologiesLtd is not owned by hedge funds. The company's largest shareholder is Shusheng Zheng, with ownership of 46%. In comparison, the second and third largest shareholders hold about 7.5% and 6.3% of the stock. Furthermore, CEO Xidian Zou is the owner of 1.1% of the company's shares.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Hangzhou DPtech TechnologiesLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 own more than half of Hangzhou DPtech Technologies Co.,Ltd.. This gives them effective control of the company. Given it has a market cap of CN¥10b, that means insiders have a whopping CN¥5.4b worth of shares in their own names. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hangzhou DPtech TechnologiesLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 18%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hangzhou DPtech TechnologiesLtd better, we need to consider many other factors. Take risks for example - Hangzhou DPtech TechnologiesLtd has 1 warning sign we think you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.