Hangzhou CNCR-IT Co.,Ltd's (SZSE:300250) market cap up CN¥375m last week, benefiting both individual investors who own 58% as well as insiders

Key Insights

• The considerable ownership by individual investors in Hangzhou CNCR-ITLtd indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 42% of the company
• Insiders own 36% of Hangzhou CNCR-ITLtd

If you want to know who really controls Hangzhou CNCR-IT Co.,Ltd (SZSE:300250), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 58% 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).

While individual investors were the group that benefitted the most from last week’s CN¥375m market cap gain, insiders too had a 36% share in those profits.

Let's take a closer look to see what the different types of shareholders can tell us about Hangzhou CNCR-ITLtd.

View our latest analysis for Hangzhou CNCR-ITLtd

What Does The Institutional Ownership Tell Us About Hangzhou CNCR-ITLtd?

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.

As you can see, institutional investors have a fair amount of stake in Hangzhou CNCR-ITLtd. 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 Hangzhou CNCR-ITLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hangzhou CNCR-ITLtd is not owned by hedge funds. Aijin Hong is currently the largest shareholder, with 35% of shares outstanding. In comparison, the second and third largest shareholders hold about 0.7% and 0.6% of the stock.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Hangzhou CNCR-ITLtd

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

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 information suggests that insiders maintain a significant holding in Hangzhou CNCR-IT Co.,Ltd. Insiders own CN¥1.3b worth of shares in the CN¥3.6b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public -- including retail investors -- own 58% of Hangzhou CNCR-ITLtd. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Hangzhou CNCR-ITLtd , and understanding them should be part of your investment process.

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.

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.