Key Insights
- Ocean’s King Lighting Science & Technology’s significant insider ownership suggests inherent interests in company’s expansion
- 68% of the company is held by a single shareholder (Shi Zhou)
- Using data from company’s past performance alongside ownership research, one can better assess the future performance of a company
If you want to know who really controls Ocean’s King Lighting Science & Technology Co., Ltd (SZSE:002724), 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 69% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, insiders as a group endured the highest losses after market cap fell by CN¥509m.
Let’s take a closer look to see what the different types of shareholders can tell us about Ocean’s King Lighting Science & Technology.
Check out our latest analysis for Ocean’s King Lighting Science & Technology
What Does The Institutional Ownership Tell Us About Ocean’s King Lighting Science & 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 Ocean’s King Lighting Science & Technology does have institutional investors; and they hold a good portion of the company’s stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Ocean’s King Lighting Science & Technology’s historic earnings and revenue below, but keep in mind there’s always more to the story.
Hedge funds don’t have many shares in Ocean’s King Lighting Science & Technology. Looking at our data, we can see that the largest shareholder is Shi Zhou with 68% of shares outstanding. This implies that they have majority interest control of the future of the company. With 1.9% and 1.1% of the shares outstanding respectively, Harvest Fund Management Co. Ltd. and Jiangyin Lianhua Optimized and Adjusted Industrial Investment Partnership Enterprise are the second and third largest shareholders.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Ocean’s King Lighting Science & Technology
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
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 information suggests that insiders own more than half of Ocean’s King Lighting Science & Technology Co., Ltd. This gives them effective control of the company. That means they own CN¥3.0b worth of shares in the CN¥4.3b company. That’s quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ocean’s King Lighting Science & Technology. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example – Ocean’s King Lighting Science & Technology has 3 warning signs we think you should be aware of.
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.
Valuation is complex, but we’re helping make it simple.
Find out whether Ocean’s King Lighting Science & Technology is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.
