Guangdong Senssun Weighing Apparatus Group Ltd.'s (SZSE:002870) market cap increased by CN¥601m, insiders receive a 52% cut

Key Insights

• Insiders appear to have a vested interest in Guangdong Senssun Weighing Apparatus Group's growth, as seen by their sizeable ownership
• The top 4 shareholders own 54% of the company
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Guangdong Senssun Weighing Apparatus Group Ltd. (SZSE:002870), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 52% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥601m last week.

In the chart below, we zoom in on the different ownership groups of Guangdong Senssun Weighing Apparatus Group.

See our latest analysis for Guangdong Senssun Weighing Apparatus Group

What Does The Institutional Ownership Tell Us About Guangdong Senssun Weighing Apparatus Group?

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.

Guangdong Senssun Weighing Apparatus Group 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 Guangdong Senssun Weighing Apparatus Group, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Guangdong Senssun Weighing Apparatus Group. The company's largest shareholder is Ningbo Joyson Electronic Corp., with ownership of 24%. Yukun Zhao is the second largest shareholder owning 19% of common stock, and Bo Chen holds about 6.3% of the company stock.

On looking further, we found that 54% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Guangdong Senssun Weighing Apparatus Group

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.

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 information suggests that insiders own more than half of Guangdong Senssun Weighing Apparatus Group Ltd.. This gives them effective control of the company. Given it has a market cap of CN¥4.7b, that means they have CN¥2.5b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 19% stake in Guangdong Senssun Weighing Apparatus Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 24% of Guangdong Senssun Weighing Apparatus Group stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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 1 warning sign for Guangdong Senssun Weighing Apparatus Group 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.