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Recent 20% Pullback Would Hurt Zhuhai Comleader Information Science & Technology Co., Ltd. (SHSE:688175) Insiders

Simply Wall St ·  Feb 3 09:40

Key Insights

  • Zhuhai Comleader Information Science & Technology's significant insider ownership suggests inherent interests in company's expansion
  • A total of 2 investors have a majority stake in the company with 51% ownership
  • Institutional ownership in Zhuhai Comleader Information Science & Technology is 17%

If you want to know who really controls Zhuhai Comleader Information Science & Technology Co., Ltd. (SHSE:688175), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 43% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by CN¥436m.

Let's delve deeper into each type of owner of Zhuhai Comleader Information Science & Technology, beginning with the chart below.

ownership-breakdown
SHSE:688175 Ownership Breakdown February 3rd 2024

What Does The Institutional Ownership Tell Us About Zhuhai Comleader Information Science & Technology?

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 Zhuhai Comleader Information Science & Technology. 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 Zhuhai Comleader Information Science & Technology's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SHSE:688175 Earnings and Revenue Growth February 3rd 2024

Hedge funds don't have many shares in Zhuhai Comleader Information Science & Technology. Our data shows that Yunlin Hu is the largest shareholder with 43% of shares outstanding. With 7.3% and 5.9% of the shares outstanding respectively, Zhuhai Hengqin New District Zixiao Investment Partnership Enterprise (Limited Partnership) and Shenzhen Nalande Investment Fund Management Co., Ltd. are the second and third largest shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Zhuhai Comleader Information Science & Technology

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. 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.

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.

Our information suggests that insiders maintain a significant holding in Zhuhai Comleader Information Science & Technology Co., Ltd.. Insiders own CN¥764m worth of shares in the CN¥1.8b company. 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 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhuhai Comleader Information Science & Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 5.9%, private equity firms could influence the Zhuhai Comleader Information Science & Technology board. 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 19%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Zhuhai Comleader Information Science & Technology is showing 3 warning signs in our investment analysis , you should know about...

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.

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