Shanghai Huace Navigation Technology Ltd (SZSE:300627) surges 4.7%; individual investors who own 36% shares profited along with insiders

Key Insights

• The considerable ownership by individual investors in Shanghai Huace Navigation Technology indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 8 shareholders
• Insiders own 27% of Shanghai Huace Navigation Technology

Every investor in Shanghai Huace Navigation Technology Ltd (SZSE:300627) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 36% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that benefitted the most from last week’s CN¥893m market cap gain, insiders too had a 27% share in those profits.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai Huace Navigation Technology.

View our latest analysis for Shanghai Huace Navigation Technology

What Does The Institutional Ownership Tell Us About Shanghai Huace Navigation Technology?

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 Shanghai Huace Navigation Technology. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Shanghai Huace Navigation Technology, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Shanghai Huace Navigation Technology. Yan Ping Zhao is currently the largest shareholder, with 20% of shares outstanding. With 12% and 5.4% of the shares outstanding respectively, Shanghai Taihehang Enterprise Development Partnership (Limited Partnership) and Ningbo Shangyu Investment Management Partnership Enterprise (Limited Partnership) are the second and third largest shareholders. Additionally, the company's CEO Dong Guo Piao directly holds 1.8% of the total shares outstanding.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Shanghai Huace Navigation Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Shanghai Huace Navigation Technology Ltd. Insiders own CN¥5.3b worth of shares in the CN¥20b company. That's quite meaningful. 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

With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shanghai Huace Navigation Technology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 22%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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. Be aware that Shanghai Huace Navigation Technology is showing 2 warning signs in our investment analysis , you should know about...

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.