Jianming Zhang Shenzhen Chuangyitong Technology Co.,Ltd.'s (SZSE:300991) CEO is the most bullish insider, and their stock value gained 14%last week

Key Insights

• Significant insider control over Shenzhen Chuangyitong TechnologyLtd implies vested interests in company growth
• 55% of the business is held by the top 2 shareholders
• 12% of Shenzhen Chuangyitong TechnologyLtd is held by Institutions

Every investor in Shenzhen Chuangyitong Technology Co.,Ltd. (SZSE:300991) should be aware of the most powerful shareholder groups. With 55% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders were the biggest beneficiaries of last week’s 14% gain.

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

View our latest analysis for Shenzhen Chuangyitong TechnologyLtd

What Does The Institutional Ownership Tell Us About Shenzhen Chuangyitong TechnologyLtd?

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.

Shenzhen Chuangyitong TechnologyLtd 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. 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 Chuangyitong TechnologyLtd's earnings history below. Of course, the future is what really matters.

Shenzhen Chuangyitong TechnologyLtd is not owned by hedge funds. With a 41% stake, CEO Jianming Zhang is the largest shareholder. With 14% and 3.3% of the shares outstanding respectively, Yuguo Yan and Beijing Zundao Asset Management Co., Ltd. are the second and third largest shareholders. Interestingly, the second-largest shareholder, Yuguo Yan is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

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. 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 Shenzhen Chuangyitong TechnologyLtd

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 most recent data indicates that insiders own the majority of Shenzhen Chuangyitong Technology Co.,Ltd.. This means they can collectively make decisions for the company. That means they own CN¥1.6b worth of shares in the CN¥2.9b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 33% stake in the company, and hence can't easily be ignored. 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:

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 2 warning signs for Shenzhen Chuangyitong 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.

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.

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