individual investors who own 40% along with institutions invested in Suzhou Dongshan Precision Manufacturing Co., Ltd. (SZSE:002384) saw increase in their holdings value last week

Key Insights

• Significant control over Suzhou Dongshan Precision Manufacturing by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 21 investors have a majority stake in the company with 50% ownership
• Insiders own 29% of Suzhou Dongshan Precision Manufacturing

To get a sense of who is truly in control of Suzhou Dongshan Precision Manufacturing Co., Ltd. (SZSE:002384), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 40% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 3.6% increase in the stock price last week, individual investors profited the most, but institutions who own 29% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of Suzhou Dongshan Precision Manufacturing.

View our latest analysis for Suzhou Dongshan Precision Manufacturing

What Does The Institutional Ownership Tell Us About Suzhou Dongshan Precision Manufacturing?

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.

We can see that Suzhou Dongshan Precision Manufacturing does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Suzhou Dongshan Precision Manufacturing's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Suzhou Dongshan Precision Manufacturing. The company's CEO Yongfeng Yuan is the largest shareholder with 13% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 12% and 3.5%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 21 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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 Suzhou Dongshan Precision Manufacturing

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. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Suzhou Dongshan Precision Manufacturing Co., Ltd.. It has a market capitalization of just CN¥54b, and insiders have CN¥16b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 40% stake in Suzhou Dongshan Precision Manufacturing. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for Suzhou Dongshan Precision Manufacturing that you should be aware of before investing here.

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.