Gold cup Electric Apparatus Co.,Ltd.’s (SZSE:002533) market cap surged CN¥535m last week, individual investors who have

Key Insights

• The considerable ownership by individual investors in Gold cup Electric ApparatusLtd indicates that they collectively have a greater say in management and business strategy
• A total of 25 investors have a majority stake in the company with 45% ownership
• 19% of Gold cup Electric ApparatusLtd is held by insiders

A look at the shareholders of Gold cup Electric Apparatus Co.,Ltd. (SZSE:002533) can tell us which group is most powerful. The group holding the most number of shares in the company, around 55% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors were the biggest beneficiaries of last week’s 7.3% gain.

Let’s delve deeper into each type of owner of Gold cup Electric ApparatusLtd, beginning with the chart below.

View our latest analysis for Gold cup Electric ApparatusLtd

What Does The Institutional Ownership Tell Us About Gold cup Electric ApparatusLtd?

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.

Gold cup Electric ApparatusLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Gold cup Electric ApparatusLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don’t have many shares in Gold cup Electric ApparatusLtd. Shenzhen Yi Xiang Investment Development Co., Ltd. is currently the largest shareholder, with 16% of shares outstanding. With 8.2% and 6.2% of the shares outstanding respectively, Xueyu Wu and Zuqin Zhou are the second and third largest shareholders. Zuqin Zhou, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. 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 Gold cup Electric ApparatusLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 maintain a significant holding in Gold cup Electric Apparatus Co.,Ltd.. Insiders own CN¥1.5b worth of shares in the CN¥7.9b company. That’s quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 55% of Gold cup Electric ApparatusLtd shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

Our data indicates that Private Companies hold 20%, of the company’s shares. 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.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Gold cup Electric ApparatusLtd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We’ve identified 1 warning sign with Gold cup Electric ApparatusLtd , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.