CEO Shoukun Wu, Shenzhen King Brother Electronics Technology Co.,Ltd.'s (SZSE:301041) largest shareholder sees value of holdings go down 13% after recent drop

Key Insights

• Shenzhen King Brother Electronics TechnologyLtd's significant insider ownership suggests inherent interests in company's expansion
• 50% of the business is held by the top 4 shareholders
• Institutional ownership in Shenzhen King Brother Electronics TechnologyLtd is 12%

Every investor in Shenzhen King Brother Electronics Technology Co.,Ltd. (SZSE:301041) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to CN¥2.4b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

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

Check out our latest analysis for Shenzhen King Brother Electronics TechnologyLtd

What Does The Institutional Ownership Tell Us About Shenzhen King Brother Electronics TechnologyLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Shenzhen King Brother Electronics TechnologyLtd. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 King Brother Electronics TechnologyLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Shenzhen King Brother Electronics TechnologyLtd. Looking at our data, we can see that the largest shareholder is the CEO Shoukun Wu with 42% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.7% and 1.4%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 King Brother Electronics TechnologyLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own a reasonable proportion of Shenzhen King Brother Electronics Technology Co.,Ltd.. It has a market capitalization of just CN¥2.4b, and insiders have CN¥1.2b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shenzhen King Brother Electronics TechnologyLtd. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Shenzhen King Brother Electronics TechnologyLtd better, we need to consider many other factors. For instance, we've identified 2 warning signs for Shenzhen King Brother Electronics TechnologyLtd that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

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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.

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