Shenzhen Coship Electronics Co., Ltd.'s (SZSE:002052) last week's 9.8% decline must have disappointed individual investors who have a significant stake

Key Insights

• The considerable ownership by individual investors in Shenzhen Coship Electronics indicates that they collectively have a greater say in management and business strategy
• The top 10 shareholders own 44% of the company
• 33% of Shenzhen Coship Electronics is held by insiders

A look at the shareholders of Shenzhen Coship Electronics Co., Ltd. (SZSE:002052) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 9.8% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 33% stock also took a hit.

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

See our latest analysis for Shenzhen Coship Electronics

What Does The Institutional Ownership Tell Us About Shenzhen Coship Electronics?

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.

As you can see, institutional investors have a fair amount of stake in Shenzhen Coship Electronics. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Shenzhen Coship Electronics' historic earnings and revenue below, but keep in mind there's always more to the story.

Shenzhen Coship Electronics is not owned by hedge funds. Xiaoli Ding is currently the largest shareholder, with 17% of shares outstanding. Huaxia Life Insurance Co. Ltd, Asset Management Arm is the second largest shareholder owning 10.0% of common stock, and Yiping Wu holds about 4.1% of the company stock.

On studying our ownership data, we found that 10 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. 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 Shenzhen Coship Electronics

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. 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.

Our information suggests that insiders maintain a significant holding in Shenzhen Coship Electronics Co., Ltd.. It has a market capitalization of just CN¥3.9b, and insiders have CN¥1.3b 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

The general public, who are usually individual investors, hold a substantial 56% stake in Shenzhen Coship Electronics, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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. For instance, we've identified 2 warning signs for Shenzhen Coship Electronics (1 shouldn't be ignored) that you should be aware of.

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.