China Leadshine Technology Co., Ltd.'s (SZSE:002979) 8.8% gain last week benefited both individual investors who own 46% as well as insiders

Key Insights

• China Leadshine Technology's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 50% of the business is held by the top 9 shareholders
• 46% of China Leadshine Technology is held by insiders

A look at the shareholders of China Leadshine Technology Co., Ltd. (SZSE:002979) can tell us which group is most powerful. 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).

Individual investors gained the most after market cap touched CN¥6.3b last week, while insiders who own 46% also benefitted.

Let's delve deeper into each type of owner of China Leadshine Technology, beginning with the chart below.

View our latest analysis for China Leadshine Technology

What Does The Institutional Ownership Tell Us About China Leadshine 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 China Leadshine Technology. 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. 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 China Leadshine Technology's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in China Leadshine Technology. With a 35% stake, CEO Weiping Li is the largest shareholder. Huimin Shi is the second largest shareholder owning 8.0% of common stock, and Sinowisdom Capital holds about 1.4% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of China Leadshine Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 most recent data indicates that insiders own a reasonable proportion of China Leadshine Technology Co., Ltd.. It has a market capitalization of just CN¥6.3b, and insiders have CN¥2.9b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 46% ownership, the general public, mostly comprising of individual investors, have some degree of sway over China Leadshine 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand China Leadshine Technology better, we need to consider many other factors. For example, we've discovered 1 warning sign for China Leadshine Technology that you should be aware of before investing here.

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.