Individual investors invested in Shenzhen Sunnypol Optoelectronics Co.,Ltd. (SZSE:002876) up 15% last week, insiders too were rewarded

Key Insights

• Significant control over Shenzhen Sunnypol OptoelectronicsLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• 44% of the business is held by the top 25 shareholders
• 29% of Shenzhen Sunnypol OptoelectronicsLtd is held by insiders

If you want to know who really controls Shenzhen Sunnypol Optoelectronics Co.,Ltd. (SZSE:002876), 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 55% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors gained the most after market cap touched CN¥3.7b last week, while insiders who own 29% also benefitted.

Let's delve deeper into each type of owner of Shenzhen Sunnypol OptoelectronicsLtd, beginning with the chart below.

View our latest analysis for Shenzhen Sunnypol OptoelectronicsLtd

What Does The Institutional Ownership Tell Us About Shenzhen Sunnypol OptoelectronicsLtd?

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.

As you can see, institutional investors have a fair amount of stake in Shenzhen Sunnypol OptoelectronicsLtd. 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 Shenzhen Sunnypol OptoelectronicsLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Shenzhen Sunnypol OptoelectronicsLtd. Jian Jun Zhang is currently the company's largest shareholder with 19% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.8% and 2.9% 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 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Shenzhen Sunnypol OptoelectronicsLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems insiders own a significant proportion of Shenzhen Sunnypol Optoelectronics Co.,Ltd.. It has a market capitalization of just CN¥3.7b, and insiders have CN¥1.1b worth of shares in their own names. 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 substantial 55% stake in Shenzhen Sunnypol OptoelectronicsLtd, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

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 instance, we've identified 2 warning signs for Shenzhen Sunnypol OptoelectronicsLtd that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.