Shenzhen Chengtian Weiye Technology Co., Ltd. (SZSE:300689) insiders, who hold 64% of the firm would be disappointed by the recent pullback

Key Insights

• Shenzhen Chengtian Weiye Technology's significant insider ownership suggests inherent interests in company's expansion
• Xue Yu Feng owns 58% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Shenzhen Chengtian Weiye Technology Co., Ltd. (SZSE:300689), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 64% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to CN¥1.4b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

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

Check out our latest analysis for Shenzhen Chengtian Weiye Technology

What Does The Institutional Ownership Tell Us About Shenzhen Chengtian Weiye Technology?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Shenzhen Chengtian Weiye 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 Chengtian Weiye Technology's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Shenzhen Chengtian Weiye Technology. Looking at our data, we can see that the largest shareholder is Xue Yu Feng with 58% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 5.5% and 1.3%, of the shares outstanding, respectively.

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

Insider Ownership Of Shenzhen Chengtian Weiye Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 own more than half of Shenzhen Chengtian Weiye Technology Co., Ltd.. This gives them effective control of the company. That means they own CN¥869m worth of shares in the CN¥1.4b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in Shenzhen Chengtian Weiye 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shenzhen Chengtian Weiye Technology better, we need to consider many other factors. Take risks for example - Shenzhen Chengtian Weiye Technology has 4 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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.