Public companies in Avary Holding(Shenzhen)Co., Limited (SZSE:002938) are its biggest bettors, and their bets paid off as stock gained 3.8% last week

Key Insights

• Avary Holding(Shenzhen)Co's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 72% of the company is held by a single shareholder (Zhen Ding Technology Holding Limited)
• 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 Avary Holding(Shenzhen)Co., Limited (SZSE:002938), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 72% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, public companies were the biggest beneficiaries of last week’s 3.8% gain.

In the chart below, we zoom in on the different ownership groups of Avary Holding(Shenzhen)Co.

View our latest analysis for Avary Holding(Shenzhen)Co

What Does The Institutional Ownership Tell Us About Avary Holding(Shenzhen)Co?

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 Avary Holding(Shenzhen)Co. 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 Avary Holding(Shenzhen)Co, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Avary Holding(Shenzhen)Co. Looking at our data, we can see that the largest shareholder is Zhen Ding Technology Holding Limited with 72% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. National Council for Social Security Fund is the second largest shareholder owning 1.0% of common stock, and AEGON-Industrial Fund Management Co. Ltd. holds about 1.0% of the company stock.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Avary Holding(Shenzhen)Co

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 less than 1% of Avary Holding(Shenzhen)Co., Limited. However, it's possible that insiders might have an indirect interest through a more complex structure. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own CN¥362k worth of shares (at current prices). In this sort of situation, it can be more interesting 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 Avary Holding(Shenzhen)Co. 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.

Public Company Ownership

We can see that public companies hold 72% of the Avary Holding(Shenzhen)Co shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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 example, we've discovered 1 warning sign for Avary Holding(Shenzhen)Co that you should be aware of before investing here.

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.