Suzhou Etron Technologies Co.,Ltd.'s (SHSE:603380) top holders are insiders and they are likely disappointed by the recent 11% drop

Key Insights

• Suzhou Etron TechnologiesLtd's significant insider ownership suggests inherent interests in company's expansion
• The top 2 shareholders own 53% of the company
• 14% of Suzhou Etron TechnologiesLtd is held by Institutions

If you want to know who really controls Suzhou Etron Technologies Co.,Ltd. (SHSE:603380), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 53% ownership. 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¥362m.

In the chart below, we zoom in on the different ownership groups of Suzhou Etron TechnologiesLtd.

See our latest analysis for Suzhou Etron TechnologiesLtd

What Does The Institutional Ownership Tell Us About Suzhou Etron 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.

We can see that Suzhou Etron TechnologiesLtd does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Suzhou Etron TechnologiesLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Suzhou Etron TechnologiesLtd. The company's largest shareholder is James Qian, with ownership of 38%. Will Wang is the second largest shareholder owning 15% of common stock, and Kai'en (Suzhou) Private Fund Management Co., Ltd. holds about 8.1% of the company stock.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Suzhou Etron TechnologiesLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own the majority of Suzhou Etron Technologies Co.,Ltd.. This means they can collectively make decisions for the company. Given it has a market cap of CN¥3.0b, that means they have CN¥1.6b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 33% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Suzhou Etron TechnologiesLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Suzhou Etron TechnologiesLtd , and understanding them should be part of your investment process.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com