Anker Innovations Limited's (SZSE:300866) market cap increased by CN¥2.0b, insiders receive a 67% cut

Key Insights

• Significant insider control over Anker Innovations implies vested interests in company growth
• The top 2 shareholders own 56% of the company
• Institutional ownership in Anker Innovations is 14%

A look at the shareholders of Anker Innovations Limited (SZSE:300866) can tell us which group is most powerful. The group holding the most number of shares in the company, around 67% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 4.4% gain.

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

Check out our latest analysis for Anker Innovations

What Does The Institutional Ownership Tell Us About Anker Innovations?

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.

Anker Innovations already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Anker Innovations, (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 Anker Innovations. Meng Yang is currently the largest shareholder, with 44% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 12% and 4.2%, of the shares outstanding, respectively. Dongping Zhao, who is the second-largest shareholder, also happens to hold the title of President.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Anker Innovations

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 most recent data indicates that insiders own the majority of Anker Innovations Limited. This means they can collectively make decisions for the company. Insiders own CN¥32b worth of shares in the CN¥48b company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Anker Innovations. 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 Anker Innovations better, we need to consider many other factors. For example, we've discovered 1 warning sign for Anker Innovations that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.