Harbin Xinguang Optic-Electronics Technology Co.,Ltd.'s (SHSE:688011) most bullish insider is CEO Weimin Kang, and their holdings value went up by 13% last week

Key Insights

• Harbin Xinguang Optic-Electronics TechnologyLtd's significant insider ownership suggests inherent interests in company's expansion
• The top 2 shareholders own 51% of the company
• Institutional ownership in Harbin Xinguang Optic-Electronics TechnologyLtd is 12%

A look at the shareholders of Harbin Xinguang Optic-Electronics Technology Co.,Ltd. (SHSE:688011) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 51% ownership. 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¥196m last week.

Let's delve deeper into each type of owner of Harbin Xinguang Optic-Electronics TechnologyLtd, beginning with the chart below.

Check out our latest analysis for Harbin Xinguang Optic-Electronics TechnologyLtd

What Does The Institutional Ownership Tell Us About Harbin Xinguang Optic-Electronics 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.

Harbin Xinguang Optic-Electronics TechnologyLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Harbin Xinguang Optic-Electronics TechnologyLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Harbin Xinguang Optic-Electronics TechnologyLtd. Looking at our data, we can see that the largest shareholder is the CEO Weimin Kang with 45% of shares outstanding. With 5.9% and 5.7% of the shares outstanding respectively, Harbin Institute of Technology Education Development Foundation, Endowment Arm and Lixin Kang are the second and third largest 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 51% stake.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Harbin Xinguang Optic-Electronics TechnologyLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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.

It seems that insiders own more than half the Harbin Xinguang Optic-Electronics Technology Co.,Ltd. stock. This gives them a lot of power. That means they own CN¥862m worth of shares in the CN¥1.7b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in Harbin Xinguang Optic-Electronics TechnologyLtd. 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:

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. To that end, you should be aware of the 1 warning sign we've spotted with Harbin Xinguang Optic-Electronics TechnologyLtd .

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.