Retail investors among Suzhou SLAC Precision Equipment CO.,Ltd.'s (SZSE:300382) largest stockholders and were hit after last week's 10% price drop

Simply Wall St · 10/15 23:29

Key Insights

  • The considerable ownership by retail investors in Suzhou SLAC Precision EquipmentLtd indicates that they collectively have a greater say in management and business strategy
  • A total of 8 investors have a majority stake in the company with 50% ownership
  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Suzhou SLAC Precision Equipment CO.,Ltd. (SZSE:300382) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 48% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, retail investors as a group endured the highest losses last week after market cap fell by CN¥703m.

In the chart below, we zoom in on the different ownership groups of Suzhou SLAC Precision EquipmentLtd.

See our latest analysis for Suzhou SLAC Precision EquipmentLtd

ownership-breakdown
SZSE:300382 Ownership Breakdown October 15th 2024

What Does The Institutional Ownership Tell Us About Suzhou SLAC Precision EquipmentLtd?

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.

We can see that Suzhou SLAC Precision EquipmentLtd 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. 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 Suzhou SLAC Precision EquipmentLtd, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SZSE:300382 Earnings and Revenue Growth October 15th 2024

Hedge funds don't have many shares in Suzhou SLAC Precision EquipmentLtd. CLAS Co., Limited is currently the company's largest shareholder with 41% of shares outstanding. With 3.3% and 1.8% of the shares outstanding respectively, China Cinda Asset Management Co., Ltd. and CSC Financial Co., Ltd., Asset Management Arm are the second and third largest shareholders.

We did some more digging and found that 8 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. 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 Suzhou SLAC Precision EquipmentLtd

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that Suzhou SLAC Precision Equipment CO.,Ltd. insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It seems the board members have no more than CN¥2.2m worth of shares in the CN¥6.3b company. Many investors in smaller companies prefer to see the board more heavily invested. 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 48% stake in Suzhou SLAC Precision EquipmentLtd. 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.

Private Company Ownership

We can see that Private Companies own 41%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

We can see that public companies hold 3.3% of the Suzhou SLAC Precision EquipmentLtd shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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. For instance, we've identified 5 warning signs for Suzhou SLAC Precision EquipmentLtd (2 are a bit unpleasant) that you should be aware of.

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.