The recent 20% gain must have brightened CEO Qiang Wei's week, Sichuan Discovery Dream Science & Technology Co.,Ltd's (SZSE:301213) most bullish insider

Key Insights

• Sichuan Discovery Dream Science & TechnologyLtd's significant insider ownership suggests inherent interests in company's expansion
• The top 2 shareholders own 58% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Sichuan Discovery Dream Science & Technology Co.,Ltd (SZSE:301213) should be aware of the most powerful shareholder groups. With 47% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥598m last week.

Let's delve deeper into each type of owner of Sichuan Discovery Dream Science & TechnologyLtd, beginning with the chart below.

Check out our latest analysis for Sichuan Discovery Dream Science & TechnologyLtd

What Does The Institutional Ownership Tell Us About Sichuan Discovery Dream Science & TechnologyLtd?

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.

As you can see, institutional investors have a fair amount of stake in Sichuan Discovery Dream Science & TechnologyLtd. 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 Sichuan Discovery Dream Science & TechnologyLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Sichuan Discovery Dream Science & TechnologyLtd. With a 42% stake, CEO Qiang Wei is the largest shareholder. With 15% and 2.4% of the shares outstanding respectively, Sichuan Discovery Dream Development Technology Partnership Enterprise (Limited Partnership) and Lijie Wang are the second and third largest shareholders. Interestingly, the third-largest shareholder, Lijie Wang is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 58% stake.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Sichuan Discovery Dream Science & TechnologyLtd

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.

It seems insiders own a significant proportion of Sichuan Discovery Dream Science & Technology Co.,Ltd. It has a market capitalization of just CN¥3.6b, and insiders have CN¥1.7b worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sichuan Discovery Dream Science & TechnologyLtd. 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

It seems that Private Companies own 15%, of the Sichuan Discovery Dream Science & TechnologyLtd stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Sichuan Discovery Dream Science & TechnologyLtd 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.