The recent 8.5% gain must have brightened CEO Ai Guo Wang's week, Qingdao Gon Technology Co., Ltd.'s (SZSE:002768) most bullish insider

Key Insights

• Insiders appear to have a vested interest in Qingdao Gon Technology's growth, as seen by their sizeable ownership
• 56% of the business is held by the top 2 shareholders
• Institutional ownership in Qingdao Gon Technology is 13%

If you want to know who really controls Qingdao Gon Technology Co., Ltd. (SZSE:002768), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 50% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥388m last week.

Let's delve deeper into each type of owner of Qingdao Gon Technology, beginning with the chart below.

See our latest analysis for Qingdao Gon Technology

What Does The Institutional Ownership Tell Us About Qingdao Gon Technology?

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.

As you can see, institutional investors have a fair amount of stake in Qingdao Gon 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. 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 Qingdao Gon Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Qingdao Gon Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Ai Guo Wang with 50% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.6% and 3.4%, of the shares outstanding, respectively.

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.

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

Insider Ownership Of Qingdao Gon Technology

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 Qingdao Gon Technology Co., Ltd.. Insiders own CN¥2.5b worth of shares in the CN¥5.0b 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 31% stake in the company, and hence can't easily be ignored. 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 6.6%, of the Qingdao Gon Technology 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Qingdao Gon Technology better, we need to consider many other factors. Be aware that Qingdao Gon Technology is showing 2 warning signs in our investment analysis , you should know about...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.