Individual investors among iMotion Automotive Technology (Suzhou) Co., Ltd.'s (HKG:1274) largest stockholders and were hit after last week's 10% price drop

Key Insights

• The considerable ownership by individual investors in iMotion Automotive Technology (Suzhou) indicates that they collectively have a greater say in management and business strategy
• The top 8 shareholders own 52% of the company
• Insiders own 30% of iMotion Automotive Technology (Suzhou)

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To get a sense of who is truly in control of iMotion Automotive Technology (Suzhou) Co., Ltd. (HKG:1274), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 43% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While the holdings of individual investors took a hit after last week’s 10% price drop, insiders with their 30% also suffered.

In the chart below, we zoom in on the different ownership groups of iMotion Automotive Technology (Suzhou).

View our latest analysis for iMotion Automotive Technology (Suzhou)

What Does The Institutional Ownership Tell Us About iMotion Automotive Technology (Suzhou)?

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.

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

We note that hedge funds don't have a meaningful investment in iMotion Automotive Technology (Suzhou). Looking at our data, we can see that the largest shareholder is the CEO Yang Song with 19% of shares outstanding. With 7.2% and 5.9% of the shares outstanding respectively, Chengtong Mixed Reform Private Fund Management Co., Ltd. and Halla Group are the second and third largest shareholders.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of iMotion Automotive Technology (Suzhou)

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 iMotion Automotive Technology (Suzhou) Co., Ltd.. Insiders own HK$512m worth of shares in the HK$1.7b 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. 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.

Private Equity Ownership

Private equity firms hold a 7.2% stake in iMotion Automotive Technology (Suzhou). This suggests they can be influential in key policy decisions. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

Our data indicates that Private Companies hold 9.1%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand iMotion Automotive Technology (Suzhou) 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 iMotion Automotive Technology (Suzhou) (at least 1 which is a bit unpleasant) , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.