Guangzhou Shiyuan Electronic Technology Company Limited (SZSE:002841) insiders, who hold 53% of the firm would be disappointed by the recent pullback

Key Insights

• Significant insider control over Guangzhou Shiyuan Electronic Technology implies vested interests in company growth
• A total of 8 investors have a majority stake in the company with 52% ownership
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

A look at the shareholders of Guangzhou Shiyuan Electronic Technology Company Limited (SZSE:002841) can tell us which group is most powerful. The group holding the most number of shares in the company, around 53% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 5.6% decline in share price, insiders suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Guangzhou Shiyuan Electronic Technology.

View our latest analysis for Guangzhou Shiyuan Electronic Technology

What Does The Institutional Ownership Tell Us About Guangzhou Shiyuan Electronic Technology?

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.

As you can see, institutional investors have a fair amount of stake in Guangzhou Shiyuan Electronic Technology. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Guangzhou Shiyuan Electronic Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

Guangzhou Shiyuan Electronic Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Zheng Cong Huang with 11% of shares outstanding. The second and third largest shareholders are Yi Ran Wang and Yong Hui Sun, with an equal amount of shares to their name at 11%.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 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 Guangzhou Shiyuan Electronic Technology

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own the majority of Guangzhou Shiyuan Electronic Technology Company Limited. This means they can collectively make decisions for the company. That means insiders have a very meaningful CN¥15b stake in this CN¥28b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in Guangzhou Shiyuan Electronic Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. To that end, you should be aware of the 2 warning signs we've spotted with Guangzhou Shiyuan Electronic Technology .

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.