retail investors who own 44% along with institutions invested in Super Telecom Co.,Ltd (SHSE:603322) saw increase in their holdings value last week

Key Insights

• The considerable ownership by retail investors in Super TelecomLtd indicates that they collectively have a greater say in management and business strategy
• A total of 11 investors have a majority stake in the company with 51% ownership
• 26% of Super TelecomLtd is held by insiders

Every investor in Super Telecom Co.,Ltd (SHSE:603322) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 44% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While retail investors were the group that reaped the most benefits after last week’s 7.0% price gain, institutions also received a 28% cut.

Let's delve deeper into each type of owner of Super TelecomLtd, beginning with the chart below.

View our latest analysis for Super TelecomLtd

What Does The Institutional Ownership Tell Us About Super TelecomLtd?

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.

As you can see, institutional investors have a fair amount of stake in Super TelecomLtd. 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 Super TelecomLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Super TelecomLtd. Our data shows that Jian Hua Liang is the largest shareholder with 21% of shares outstanding. With 6.4% and 5.0% of the shares outstanding respectively, Shanghai Jiuyi Investment Management Co., Ltd and Hengqin Guangjin Meihao Fund Management Co., Ltd. are the second and third largest shareholders. Additionally, the company's CEO Hai Hui Zhong directly holds 0.8% of the total shares outstanding.

A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Super TelecomLtd

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Super Telecom Co.,Ltd. Insiders have a CN¥1.6b stake in this CN¥6.1b business. 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 44% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Super TelecomLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Super TelecomLtd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Super TelecomLtd , and understanding them should be part of your investment process.

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.