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Both Retail Investors Who Control a Good Portion of Shinva Medical Instrument Co.,Ltd. (SHSE:600587) Along With Institutions Must Be Dismayed After Last Week's 3.8% Decrease

Simply Wall St ·  Jan 11 07:09

Key Insights

  • The considerable ownership by retail investors in Shinva Medical InstrumentLtd indicates that they collectively have a greater say in management and business strategy
  • A total of 10 investors have a majority stake in the company with 51% ownership
  • Institutions own 30% of Shinva Medical InstrumentLtd

Every investor in Shinva Medical Instrument Co.,Ltd. (SHSE:600587) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 35% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 3.8% decrease in the stock price last week, retail investors suffered the most losses, but institutions who own 30% stock also took a hit.

Let's delve deeper into each type of owner of Shinva Medical InstrumentLtd, beginning with the chart below.

See our latest analysis for Shinva Medical InstrumentLtd

ownership-breakdown
SHSE:600587 Ownership Breakdown January 10th 2024

What Does The Institutional Ownership Tell Us About Shinva Medical InstrumentLtd?

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.

Shinva Medical InstrumentLtd 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 Shinva Medical InstrumentLtd's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SHSE:600587 Earnings and Revenue Growth January 10th 2024

We note that hedge funds don't have a meaningful investment in Shinva Medical InstrumentLtd. China National Nuclear Power Co., Ltd. is currently the company's largest shareholder with 29% of shares outstanding. For context, the second largest shareholder holds about 4.5% of the shares outstanding, followed by an ownership of 4.1% by the third-largest shareholder.

We also observed that the top 10 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Shinva Medical InstrumentLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Our most recent data indicates that insiders own less than 1% of Shinva Medical Instrument Co.,Ltd.. But they may have an indirect interest through a corporate structure that we haven't picked up on. Keep in mind that it's a big company, and the insiders own CN¥23m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 35% stake in Shinva Medical InstrumentLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 5.4%, of the Shinva Medical InstrumentLtd stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

It appears to us that public companies own 29% of Shinva Medical InstrumentLtd. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

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

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.

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