Individual investors who hold 51% of Shenzhen CDL Precision Technology Co., Ltd (SZSE:300686) gained 14%, insiders profited as well

Key Insights

• The considerable ownership by individual investors in Shenzhen CDL Precision Technology indicates that they collectively have a greater say in management and business strategy
• 49% of the business is held by the top 23 shareholders
• Insiders own 35% of Shenzhen CDL Precision Technology

If you want to know who really controls Shenzhen CDL Precision Technology Co., Ltd (SZSE:300686), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 51% 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 reaped the most benefits after last week’s 14% price gain, insiders also received a 35% cut.

In the chart below, we zoom in on the different ownership groups of Shenzhen CDL Precision Technology.

See our latest analysis for Shenzhen CDL Precision Technology

What Does The Institutional Ownership Tell Us About Shenzhen CDL Precision 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 Shenzhen CDL Precision Technology. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Shenzhen CDL Precision Technology's earnings history below. Of course, the future is what really matters.

Shenzhen CDL Precision Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Jia Wei Wu with 18% of shares outstanding. With 17% and 4.1% of the shares outstanding respectively, Yi Chun Chen and Shenzhen CMAF Management Co., Ltd. are the second and third largest shareholders.

Our studies suggest that the top 23 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 Shenzhen CDL Precision Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Shenzhen CDL Precision Technology Co., Ltd. It has a market capitalization of just CN¥2.9b, and insiders have CN¥1.0b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 51% stake in Shenzhen CDL Precision Technology, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

It seems that Private Companies own 4.0%, of the Shenzhen CDL Precision Technology stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Shenzhen CDL Precision Technology better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Shenzhen CDL Precision Technology (including 1 which shouldn't be ignored) .

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.

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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.