Retail investors invested in Hangzhou Shenhao Technology Co.,LTD. (SZSE:300853) up 19% last week, insiders too were rewarded

Key Insights

• Hangzhou Shenhao TechnologyLTD's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 14 shareholders own 51% of the company
• Insiders own 40% of Hangzhou Shenhao TechnologyLTD

Every investor in Hangzhou Shenhao Technology Co.,LTD. (SZSE:300853) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 48% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While retail investors were the group that benefitted the most from last week’s CN¥626m market cap gain, insiders too had a 40% share in those profits.

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

Check out our latest analysis for Hangzhou Shenhao TechnologyLTD

What Does The Institutional Ownership Tell Us About Hangzhou Shenhao TechnologyLTD?

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 Hangzhou Shenhao TechnologyLTD. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Hangzhou Shenhao TechnologyLTD's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Hangzhou Shenhao TechnologyLTD. Our data shows that Rushen Chen is the largest shareholder with 22% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 3.1%, of the shares outstanding, respectively. Furthermore, CEO Guangke Cao is the owner of 0.8% of the company's shares.

After doing some more digging, we found that the top 14 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Hangzhou Shenhao TechnologyLTD

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our information suggests that insiders maintain a significant holding in Hangzhou Shenhao Technology Co.,LTD.. It has a market capitalization of just CN¥3.8b, and insiders have CN¥1.5b worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 48% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Hangzhou Shenhao TechnologyLTD you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.