With a 68% stake, Shanghai BOCHU Electronic Technology Corporation Limited. (SHSE:688188) insiders have a lot riding on the company

Key Insights

• Insiders appear to have a vested interest in Shanghai BOCHU Electronic Technology's growth, as seen by their sizeable ownership
• A total of 4 investors have a majority stake in the company with 59% ownership
• Institutional ownership in Shanghai BOCHU Electronic Technology is 17%

If you want to know who really controls Shanghai BOCHU Electronic Technology Corporation Limited. (SHSE:688188), then you'll have to look at the makeup of its share registry. With 68% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So, insiders of Shanghai BOCHU Electronic Technology have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai BOCHU Electronic Technology.

View our latest analysis for Shanghai BOCHU Electronic Technology

What Does The Institutional Ownership Tell Us About Shanghai BOCHU Electronic Technology?

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.

We can see that Shanghai BOCHU Electronic Technology does have institutional investors; and they hold a good portion of the company's stock. 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 Shanghai BOCHU Electronic Technology, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Shanghai BOCHU Electronic Technology. Looking at our data, we can see that the largest shareholder is Ye Tang with 19% of shares outstanding. Tiantian Dai is the second largest shareholder owning 15% of common stock, and Lin Lu holds about 13% of the company stock.

Our research also brought to light the fact that roughly 59% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Shanghai BOCHU Electronic Technology

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

It seems that insiders own more than half the Shanghai BOCHU Electronic Technology Corporation Limited. stock. This gives them a lot of power. Insiders own CN¥26b worth of shares in the CN¥38b company. That's extraordinary! 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

The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Shanghai BOCHU Electronic Technology is showing 1 warning sign in our investment analysis , you should know about...

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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