Individual investors among Sanchuan Wisdom Technology Co., Ltd.'s (SZSE:300066) largest shareholders, saw gain in holdings value after stock jumped 15% last week

Key Insights

• The considerable ownership by individual investors in Sanchuan Wisdom Technology indicates that they collectively have a greater say in management and business strategy
• 49% of the business is held by the top 25 shareholders
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Sanchuan Wisdom Technology Co., Ltd. (SZSE:300066) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 51% 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).

As a result, individual investors were the biggest beneficiaries of last week’s 15% gain.

In the chart below, we zoom in on the different ownership groups of Sanchuan Wisdom Technology.

Check out our latest analysis for Sanchuan Wisdom Technology

What Does The Institutional Ownership Tell Us About Sanchuan Wisdom Technology?

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 Sanchuan Wisdom Technology. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Sanchuan Wisdom Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Sanchuan Wisdom Technology. Jiangxi Sanchuan Group Co., Ltd. is currently the company's largest shareholder with 36% of shares outstanding. With 3.0% and 3.0% of the shares outstanding respectively, Ganghua Zhou and Baohua Tong are the second and third largest shareholders. Baohua Tong, who is the third-largest shareholder, also happens to hold the title of Chairman of Corporate Board. Furthermore, CEO Qiangzu Li is the owner of 0.6% of the company's shares.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Sanchuan Wisdom Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 some shares in Sanchuan Wisdom Technology Co., Ltd.. As individuals, the insiders collectively own CN¥285m worth of the CN¥3.7b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 51% stake in Sanchuan Wisdom Technology, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

It seems that Private Companies own 36%, of the Sanchuan Wisdom Technology stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 instance, we've identified 2 warning signs for Sanchuan Wisdom Technology that you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.