Dnake (Xiamen) Intelligent Technology Co., Ltd.'s (SZSE:300884) most bullish insider is CEO Guodong Miao, and their holdings value went up by 13% last week

Key Insights

• Insiders appear to have a vested interest in Dnake (Xiamen) Intelligent Technology's growth, as seen by their sizeable ownership
• A total of 8 investors have a majority stake in the company with 51% ownership
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

If you want to know who really controls Dnake (Xiamen) Intelligent Technology Co., Ltd. (SZSE:300884), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 45% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit CN¥2.5b market cap following a 13% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Dnake (Xiamen) Intelligent Technology.

See our latest analysis for Dnake (Xiamen) Intelligent Technology

What Does The Institutional Ownership Tell Us About Dnake (Xiamen) Intelligent 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.

We can see that Dnake (Xiamen) Intelligent Technology does have institutional investors; and they hold a good portion of the company's stock. 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 Dnake (Xiamen) Intelligent Technology's earnings history below. Of course, the future is what really matters.

Dnake (Xiamen) Intelligent Technology is not owned by hedge funds. With a 33% stake, CEO Guodong Miao is the largest shareholder. In comparison, the second and third largest shareholders hold about 5.7% and 4.2% of the stock. Interestingly, the second-largest shareholder, Wei Zhuang is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Dnake (Xiamen) Intelligent 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.

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 Dnake (Xiamen) Intelligent Technology Co., Ltd.. Insiders own CN¥1.1b worth of shares in the CN¥2.5b company. 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 43% 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.

Private Company Ownership

It seems that Private Companies own 3.7%, of the Dnake (Xiamen) Intelligent Technology stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Dnake (Xiamen) Intelligent Technology better, we need to consider many other factors. Be aware that Dnake (Xiamen) Intelligent Technology is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...

Of course this may not be the best stock to buy. So take a peek at this free 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.