Private companies among Lingyi iTech (Guangdong) Company's (SZSE:002600) largest stockholders and were hit after last week's 7.0% price drop

Key Insights

• Significant control over Lingyi iTech (Guangdong) by private companies implies that the general public has more power to influence management and governance-related decisions
• Lingsheng Investment (Jiangsu) Co., Ltd. owns 59% of the company
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Lingyi iTech (Guangdong) Company (SZSE:002600), then you'll have to look at the makeup of its share registry. With 59% stake, private companies 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).

And last week, private companies endured the biggest losses as the stock fell by 7.0%.

In the chart below, we zoom in on the different ownership groups of Lingyi iTech (Guangdong).

View our latest analysis for Lingyi iTech (Guangdong)

What Does The Institutional Ownership Tell Us About Lingyi iTech (Guangdong)?

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.

Lingyi iTech (Guangdong) 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 Lingyi iTech (Guangdong), (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Lingyi iTech (Guangdong). Our data shows that Lingsheng Investment (Jiangsu) Co., Ltd. is the largest shareholder with 59% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Fangqin Zeng is the second largest shareholder owning 2.1% of common stock, and Lingyi iTech (Guangdong) Company, ESOP holds about 0.9% of the company stock. Fangqin Zeng, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Lingyi iTech (Guangdong)

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 most recent data indicates that insiders own some shares in Lingyi iTech (Guangdong) Company. The insiders have a meaningful stake worth CN¥1.6b. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Lingyi iTech (Guangdong). This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 59%, of the company's shares. 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. To that end, you should be aware of the 1 warning sign we've spotted with Lingyi iTech (Guangdong) .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.