TES Touch Embedded Solutions (Xiamen) Co., Ltd.'s (SZSE:003019) market cap increased by CN¥699m, insiders receive a 43% cut

Key Insights

• TES Touch Embedded Solutions (Xiamen)'s significant insider ownership suggests inherent interests in company's expansion
• 52% of the business is held by the top 8 shareholders
• Institutional ownership in TES Touch Embedded Solutions (Xiamen) is 15%

To get a sense of who is truly in control of TES Touch Embedded Solutions (Xiamen) Co., Ltd. (SZSE:003019), 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 43% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥699m last week.

In the chart below, we zoom in on the different ownership groups of TES Touch Embedded Solutions (Xiamen).

See our latest analysis for TES Touch Embedded Solutions (Xiamen)

What Does The Institutional Ownership Tell Us About TES Touch Embedded Solutions (Xiamen)?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that TES Touch Embedded Solutions (Xiamen) does have institutional investors; and they hold a good portion of the company's stock. 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 TES Touch Embedded Solutions (Xiamen)'s earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in TES Touch Embedded Solutions (Xiamen). Chao-Juei Chiang is currently the largest shareholder, with 31% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.7% and 3.0%, of the shares outstanding, respectively. Mingfang Li, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

We did some more digging and found that 8 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of TES Touch Embedded Solutions (Xiamen)

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of TES Touch Embedded Solutions (Xiamen) Co., Ltd.. Insiders have a CN¥1.9b stake in this CN¥4.6b business. 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

The general public-- including retail investors -- own 38% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that TES Touch Embedded Solutions (Xiamen) is showing 2 warning signs in our investment analysis , you should know about...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.