Insiders with their considerable ownership were the key benefactors as Suntront Technology Co., Ltd. (SZSE:300259) touches CN¥3.2b market cap

Simply Wall St · 09/27 22:48

Key Insights

  • Insiders appear to have a vested interest in Suntront Technology's growth, as seen by their sizeable ownership
  • 50% of the business is held by the top 3 shareholders
  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Suntront Technology Co., Ltd. (SZSE:300259) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 51% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit CN¥3.2b market cap following a 13% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Suntront Technology.

View our latest analysis for Suntront Technology

ownership-breakdown
SZSE:300259 Ownership Breakdown September 27th 2024

What Does The Institutional Ownership Tell Us About Suntront Technology?

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.

Less than 5% of Suntront Technology is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

earnings-and-revenue-growth
SZSE:300259 Earnings and Revenue Growth September 27th 2024

Hedge funds don't have many shares in Suntront Technology. Our data shows that Zhanbo Fei is the largest shareholder with 37% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.5% and 4.8% of the stock.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Suntront 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 most recent data indicates that insiders own the majority of Suntront Technology Co., Ltd.. This means they can collectively make decisions for the company. So they have a CN¥1.6b stake in this CN¥3.2b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 46% stake in Suntront Technology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Suntront Technology better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Suntront Technology (of which 1 is significant!) you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.