Institutions profited after Shenzhen Sunlord Electronics Co.,Ltd.'s (SZSE:002138) market cap rose CN¥1.6b last week but retail investors profited the most

Key Insights

• Shenzhen Sunlord ElectronicsLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 44% of the business is held by the top 25 shareholders
• 33% of Shenzhen Sunlord ElectronicsLtd is held by Institutions

Every investor in Shenzhen Sunlord Electronics Co.,Ltd. (SZSE:002138) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Retail investors gained the most after market cap touched CN¥21b last week, while institutions who own 33% also benefitted.

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

Check out our latest analysis for Shenzhen Sunlord ElectronicsLtd

What Does The Institutional Ownership Tell Us About Shenzhen Sunlord ElectronicsLtd?

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.

Shenzhen Sunlord ElectronicsLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Shenzhen Sunlord ElectronicsLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Shenzhen Sunlord ElectronicsLtd is not owned by hedge funds. The company's largest shareholder is Xinyu Hengshuntong Electronic Technology Development Co., Ltd., with ownership of 7.0%. The second and third largest shareholders are AEGON-Industrial Fund Management Co. Ltd. and Jinyu Yuan, with an equal amount of shares to their name at 6.8%. Jinyu Yuan, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. In addition, we found that Hong Yang Shi, the CEO has 0.7% of the shares allocated to their name.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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

Insider Ownership Of Shenzhen Sunlord ElectronicsLtd

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.

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 some shares in Shenzhen Sunlord Electronics Co.,Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥1.8b worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 50% stake in Shenzhen Sunlord ElectronicsLtd, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

We can see that Private Companies own 7.0%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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 Shenzhen Sunlord ElectronicsLtd is showing 2 warning signs 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.

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

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