Sunyes Manufacturing (Zhejiang) Holding Co., Ltd.'s (SZSE:002388) stock price dropped 10% last week; retail investors would not be happy

Key Insights

• Sunyes Manufacturing (Zhejiang) Holding's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 25 investors have a majority stake in the company with 42% ownership
• Institutions own 15% of Sunyes Manufacturing (Zhejiang) Holding

To get a sense of who is truly in control of Sunyes Manufacturing (Zhejiang) Holding Co., Ltd. (SZSE:002388), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 58% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 10% decline in share price, retail investors suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Sunyes Manufacturing (Zhejiang) Holding.

View our latest analysis for Sunyes Manufacturing (Zhejiang) Holding

What Does The Institutional Ownership Tell Us About Sunyes Manufacturing (Zhejiang) Holding?

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 Sunyes Manufacturing (Zhejiang) Holding 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 Sunyes Manufacturing (Zhejiang) Holding's earnings history below. Of course, the future is what really matters.

Sunyes Manufacturing (Zhejiang) Holding is not owned by hedge funds. Our data shows that Quzhou Baoxin Central Land Technology Development Partnership (Limited Partnership) is the largest shareholder with 8.9% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.7% and 5.0% of the stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Sunyes Manufacturing (Zhejiang) Holding

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Shareholders would probably be interested to learn that insiders own shares in Sunyes Manufacturing (Zhejiang) Holding Co., Ltd.. As individuals, the insiders collectively own CN¥119m worth of the CN¥1.9b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public -- including retail investors -- own 58% of Sunyes Manufacturing (Zhejiang) Holding. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

We can see that Private Companies own 21%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 example, we've discovered 1 warning sign for Sunyes Manufacturing (Zhejiang) Holding that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.