Hangzhou Sunrise Technology Co.,Ltd.'s (SZSE:300360) 5.7% gain last week benefited both individual investors who own 39% as well as insiders

Key Insights

• Hangzhou Sunrise TechnologyLtd's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 8 investors have a majority stake in the company with 51% ownership
• Insider ownership in Hangzhou Sunrise TechnologyLtd is 23%

Every investor in Hangzhou Sunrise Technology Co.,Ltd. (SZSE:300360) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 39% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 5.7% increase in the stock price last week, individual investors profited the most, but insiders who own 23% stock also stood to gain from the increase.

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

Check out our latest analysis for Hangzhou Sunrise TechnologyLtd

What Does The Institutional Ownership Tell Us About Hangzhou Sunrise TechnologyLtd?

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 Hangzhou Sunrise TechnologyLtd. 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. 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 Sunrise TechnologyLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hangzhou Sunrise TechnologyLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Hangzhou Sunrise Group Co., Ltd. with 21% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 12% and 4.0%, of the shares outstanding, respectively. Furthermore, CEO Guang Yang is the owner of 2.6% of the company's shares.

On further inspection, we found that more than half the company's shares are owned by the top 8 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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Hangzhou Sunrise TechnologyLtd

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. 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.

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.

It seems insiders own a significant proportion of Hangzhou Sunrise Technology Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥2.1b stake in this CN¥9.0b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 39% stake in Hangzhou Sunrise 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

Our data indicates that Private Companies hold 21%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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 example, we've discovered 1 warning sign for Hangzhou Sunrise TechnologyLtd that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.