After the recent decline, Q Technology (Group) Company Limited (HKG:1478) Top Key Executive Ningning He's holdings have lost 8.6% of their value

Key Insights

• Q Technology (Group)'s significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Ningning He with a 64% stake
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

Every investor in Q Technology (Group) Company Limited (HKG:1478) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 64% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to HK$4.3b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Q Technology (Group), beginning with the chart below.

Check out our latest analysis for Q Technology (Group)

What Does The Institutional Ownership Tell Us About Q Technology (Group)?

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 Q Technology (Group) 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Q Technology (Group), (below). Of course, keep in mind that there are other factors to consider, too.

Q Technology (Group) is not owned by hedge funds. Our data suggests that Ningning He, who is also the company's Top Key Executive, holds the most number of shares at 64%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. Harvest Fund Management Co. Ltd. is the second largest shareholder owning 1.6% of common stock, and The Vanguard Group, Inc. holds about 1.3% of the company stock.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Q Technology (Group)

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems that insiders own more than half the Q Technology (Group) Company Limited stock. This gives them a lot of power. So they have a HK$2.7b stake in this HK$4.3b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in Q Technology (Group). 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Q Technology (Group) you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.