Insiders the biggest winners as Keystone Technology Co.,Ltd.'s (SHSE:605588) market cap rises to CN¥4.0b

Key Insights

• Keystone TechnologyLtd's significant insider ownership suggests inherent interests in company's expansion
• 57% of the company is held by a single shareholder (Jianwei Zhang)
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Keystone Technology Co.,Ltd. (SHSE:605588) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 64% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 21% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Keystone TechnologyLtd.

See our latest analysis for Keystone TechnologyLtd

What Does The Institutional Ownership Tell Us About Keystone 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 Keystone 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. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

We note that hedge funds don't have a meaningful investment in Keystone TechnologyLtd. The company's largest shareholder is Jianwei Zhang, with ownership of 57%. This implies that they have majority interest control of the future of the company. Aoxing Zhang is the second largest shareholder owning 5.0% of common stock, and Zhenjiang Guanxiang Enterprise Management Center (Limited Partnership) holds about 3.1% of the company stock. Furthermore, CEO Fangfang Men is the owner of 1.4% of the company's shares.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Keystone TechnologyLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own the majority of Keystone Technology Co.,Ltd.. This means they can collectively make decisions for the company. That means they own CN¥2.6b worth of shares in the CN¥4.0b company. That's quite meaningful. 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 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Keystone 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

We can see that Private Companies own 3.7%, of the shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Keystone TechnologyLtd better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Keystone TechnologyLtd (including 3 which can't be ignored) .

Of course this may not be the best stock to buy. So take a peek at this free 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.