Retail investors among Sichuan Tianyi Comheart Telecom Co., Ltd.'s (SZSE:300504) largest shareholders, saw gain in holdings value after stock jumped 9.4% last week

Key Insights

• Significant control over Sichuan Tianyi Comheart Telecom by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 3 shareholders own 50% of the company
• Insider ownership in Sichuan Tianyi Comheart Telecom is 27%

If you want to know who really controls Sichuan Tianyi Comheart Telecom Co., Ltd. (SZSE:300504), then you'll have to look at the makeup of its share registry. With 40% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors collectively scored the highest last week as the company hit CN¥4.5b market cap following a 9.4% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Sichuan Tianyi Comheart Telecom.

View our latest analysis for Sichuan Tianyi Comheart Telecom

What Does The Institutional Ownership Tell Us About Sichuan Tianyi Comheart Telecom?

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.

Less than 5% of Sichuan Tianyi Comheart Telecom is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Sichuan Tianyi Comheart Telecom is not owned by hedge funds. Sichuan Tianyi Group Co. Ltd is currently the largest shareholder, with 31% of shares outstanding. Shi Hong Li is the second largest shareholder owning 10% of common stock, and Jun Hua Li holds about 9.1% of the company stock. Jun Hua Li, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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

Insider Ownership Of Sichuan Tianyi Comheart Telecom

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.

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.

It seems insiders own a significant proportion of Sichuan Tianyi Comheart Telecom Co., Ltd.. It has a market capitalization of just CN¥4.5b, and insiders have CN¥1.2b worth of shares in their own names. 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 40% 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.

Private Company Ownership

We can see that Private Companies own 31%, of the shares on issue. 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. Be aware that Sichuan Tianyi Comheart Telecom is showing 4 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

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.