Hollyland (China) Electronics Technology Corporation Limited's (SZSE:002729) 10% gain last week benefited both individual investors who own 46% as well as insiders

Key Insights

• The considerable ownership by individual investors in Hollyland (China) Electronics Technology indicates that they collectively have a greater say in management and business strategy
• The top 9 shareholders own 51% of the company
• Insiders own 40% of Hollyland (China) Electronics Technology

If you want to know who really controls Hollyland (China) Electronics Technology Corporation Limited (SZSE:002729), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 46% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that reaped the most benefits after last week’s 10% price gain, insiders also received a 40% cut.

Let's delve deeper into each type of owner of Hollyland (China) Electronics Technology, beginning with the chart below.

Check out our latest analysis for Hollyland (China) Electronics Technology

What Does The Institutional Ownership Tell Us About Hollyland (China) Electronics Technology?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Hollyland (China) Electronics Technology does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Hollyland (China) Electronics Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Hollyland (China) Electronics Technology. Looking at our data, we can see that the largest shareholder is Shu Huang with 25% of shares outstanding. The second and third largest shareholders are Qiqing Tang and Jianbo Su, with an equal amount of shares to their name at 5.5%.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Hollyland (China) Electronics Technology

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 information suggests that insiders maintain a significant holding in Hollyland (China) Electronics Technology Corporation Limited. Insiders have a CN¥706m stake in this CN¥1.8b business. 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 46% stake in Hollyland (China) Electronics Technology. 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.

Private Company Ownership

It seems that Private Companies own 3.2%, of the Hollyland (China) Electronics Technology stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hollyland (China) Electronics Technology better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with Hollyland (China) Electronics Technology .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

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