individual investors who own 33% along with institutions invested in Visionox Technology Inc. (SZSE:002387) saw increase in their holdings value last week

Simply Wall St · 08/30 22:48

Key Insights

  • Significant control over Visionox Technology by individual investors implies that the general public has more power to influence management and governance-related decisions
  • The top 6 shareholders own 55% of the company
  • Institutional ownership in Visionox Technology is 27%

A look at the shareholders of Visionox Technology Inc. (SZSE:002387) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 33% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 11% increase in the stock price last week, individual investors profited the most, but institutions who own 27% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of Visionox Technology.

Check out our latest analysis for Visionox Technology

ownership-breakdown
SZSE:002387 Ownership Breakdown August 30th 2024

What Does The Institutional Ownership Tell Us About Visionox 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.

We can see that Visionox Technology 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 Visionox Technology's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SZSE:002387 Earnings and Revenue Growth August 30th 2024

Visionox Technology is not owned by hedge funds. Tibet Zhihe Technology Development Co., Ltd. is currently the company's largest shareholder with 19% of shares outstanding. With 12% and 9.5% of the shares outstanding respectively, Hefei Jianshu Investment Co., Ltd and Kunshan Guochuang Investment Group Co.,Ltd. are the second and third largest shareholders.

We also observed that the top 6 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 Visionox 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 data suggests that insiders own under 1% of Visionox Technology Inc. in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CN¥18m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

With a 33% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Visionox Technology. 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.

Private Equity Ownership

With a stake of 19%, private equity firms could influence the Visionox 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 21%, 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 Visionox Technology is showing 1 warning sign in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.