Shenzhen Kedali Industry Co., Ltd. (SZSE:002850) insiders have significant skin in the game with 38% ownership

Key Insights

• Shenzhen Kedali Industry's significant insider ownership suggests inherent interests in company's expansion
• The top 6 shareholders own 53% of the company
• 34% of Shenzhen Kedali Industry is held by Institutions

If you want to know who really controls Shenzhen Kedali Industry Co., Ltd. (SZSE:002850), then you'll have to look at the makeup of its share registry. With 38% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So it follows, every decision made by insiders of Shenzhen Kedali Industry regarding the company's future would be crucial to them.

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

View our latest analysis for Shenzhen Kedali Industry

What Does The Institutional Ownership Tell Us About Shenzhen Kedali Industry?

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.

Shenzhen Kedali Industry already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Shenzhen Kedali Industry's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Shenzhen Kedali Industry. Our data shows that Jian Li Li is the largest shareholder with 28% of shares outstanding. With 9.2% and 4.3% of the shares outstanding respectively, Jian Ju Li and China Asset Management 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 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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Shenzhen Kedali Industry

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 insiders maintain a significant holding in Shenzhen Kedali Industry Co., Ltd.. It has a market capitalization of just CN¥34b, and insiders have CN¥13b worth of shares in their own names. That's quite significant. 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 26% stake in Shenzhen Kedali Industry. 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 Shenzhen Kedali Industry better, we need to consider many other factors. For instance, we've identified 1 warning sign for Shenzhen Kedali Industry that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.