Retail investors who hold 43% of Qingdao Eastsoft Communication Technology Co.,Ltd (SZSE:300183) gained 7.7%, insiders profited as well

Key Insights

• Significant control over Qingdao Eastsoft Communication TechnologyLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
• 52% of the business is held by the top 4 shareholders
• Insiders own 40% of Qingdao Eastsoft Communication TechnologyLtd

If you want to know who really controls Qingdao Eastsoft Communication Technology Co.,Ltd (SZSE:300183), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 43% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While retail investors were the group that reaped the most benefits after last week’s 7.7% price gain, insiders also received a 40% cut.

Let's delve deeper into each type of owner of Qingdao Eastsoft Communication TechnologyLtd, beginning with the chart below.

See our latest analysis for Qingdao Eastsoft Communication TechnologyLtd

What Does The Institutional Ownership Tell Us About Qingdao Eastsoft Communication TechnologyLtd?

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.

Institutions have a very small stake in Qingdao Eastsoft Communication TechnologyLtd. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Qingdao Eastsoft Communication TechnologyLtd. Looking at our data, we can see that the largest shareholder is the CEO Jian Cui with 16% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 16% and 10%, of the shares outstanding, respectively.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Qingdao Eastsoft Communication TechnologyLtd

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 information suggests that insiders maintain a significant holding in Qingdao Eastsoft Communication Technology Co.,Ltd. It has a market capitalization of just CN¥8.3b, and insiders have CN¥3.3b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Qingdao Eastsoft Communication TechnologyLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 16%, of the Qingdao Eastsoft Communication TechnologyLtd 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Qingdao Eastsoft Communication TechnologyLtd better, we need to consider many other factors. For instance, we've identified 4 warning signs for Qingdao Eastsoft Communication TechnologyLtd (1 is potentially serious) that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.