Insiders with their considerable ownership were the key benefactors as Chengdu Shengbang Seals Co.,Ltd. (SZSE:301233) touches CN¥1.9b market cap

Key Insights

• Chengdu Shengbang SealsLtd's significant insider ownership suggests inherent interests in company's expansion
• 59% of the business is held by the top 2 shareholders
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Chengdu Shengbang Seals Co.,Ltd. (SZSE:301233), 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 62% 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.

As a result, insiders scored the highest last week as the company hit CN¥1.9b market cap following a 11% gain in the stock.

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

View our latest analysis for Chengdu Shengbang SealsLtd

What Does The Institutional Ownership Tell Us About Chengdu Shengbang SealsLtd?

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.

Institutions have a very small stake in Chengdu Shengbang SealsLtd. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Chengdu Shengbang SealsLtd is not owned by hedge funds. The company's largest shareholder is Xilong Lai, with ownership of 43%. In comparison, the second and third largest shareholders hold about 17% and 1.0% of the stock. Two of the top three shareholders happen to be Chief Executive Officer and Member of the Board of Directors, respectively. That is, insiders feature higher up in the heirarchy of the company's top shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Chengdu Shengbang SealsLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 own more than half of Chengdu Shengbang Seals Co.,Ltd.. This gives them effective control of the company. That means they own CN¥1.1b worth of shares in the CN¥1.9b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

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

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Chengdu Shengbang SealsLtd better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Chengdu Shengbang SealsLtd (including 1 which is concerning) .

Of course this may not be the best stock to buy. So take a peek at this free 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.