[ad_1]
key insights
If you look at the shareholders of TRS Information Technology Co., Ltd. (SZSE: 300229), you will know which group is the most powerful. The largest group holding shares in the company are retail investors, about 53% to be precise. In other words, the group faces the greatest upside potential (or downside risk).
As a result, retail investors collectively scored the highest last week, with the company’s stock price rising 10% and its market value reaching 14 billion yuan.
Let’s dig deeper into each type of owner of TRS Information Technology, starting with the chart below.
See our latest analysis for TRS Information Technology
What does institutional ownership tell us about TRS Information Technology?
Many institutions measure their performance against an index that approximates the local market. So they usually focus more on companies included in major indexes.
As you can see, institutional investors own a fair amount of shares in TRS Information Technology. This means the analysts working for these institutions have covered the stock and they like it. But just like everyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop quickly. So it’s worth checking TRS Information Technology’s profit history, below. Of course, the future is what really matters.
TRS Information Technology is not owned by hedge funds. The company’s largest shareholder is Xinke Interactive Technology Development Co., Ltd., which holds 27% of the shares. For context, the second largest shareholder holds approximately 5.5% of shares outstanding, followed by the third largest shareholder with 3.6%.
A deeper look at our ownership data shows that the top 25 shareholders collectively own less than half, suggesting there are a large number of small shareholders but no single shareholder has a majority interest.
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. Analyst coverage on the stock is modest, but not much. So there’s room for it to gain more coverage.
Insider ownership of TRS Information Technology
While the precise definition of an insider can be subjective, nearly everyone considers board members to be insiders. Management is ultimately accountable to the board of directors. However, it is not uncommon for managers to serve as executive board members, especially if they are founders or CEOs.
Most view insider ownership as a positive because it can show the board is well aligned with other shareholders. However, in some cases too much power is concentrated within this group.
Our latest data shows that insiders own less than 1% of TRS Information Technology Ltd. However, we do note that insiders may have indirect interests through private companies or other corporate structures. Remember, this is a big company, with insiders own $139m worth of shares. Absolute values may be more important than proportional shares. It’s always good to see at least some insider ownership, but it might be worth checking if these insiders have been selling shares.
general public ownership
The general public (usually individual investors) owns a significant 53% stake in TRS Information Technology, suggesting that it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policy and director appointments. They may also exercise voting rights on acquisitions or mergers that may not enhance profitability.
private company ownership
We can see that private companies own 33% of shares outstanding. Private companies may be related parties. Sometimes insiders have an interest in a public company through holdings in a private company rather than in their own capacity. While it is difficult to draw any general conclusions, it is noteworthy as an area for further research.
Next step:
I find it very interesting to know who actually owns a company. But to truly gain insight, we need to consider other information.Take risk as an example – TRS Information Technology has 3 warning signs We think you should know.
If you’re like me, you might want to consider whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Note: Figures for this article are calculated using data from the past 12 months, that is, the 12-month period ending on the last day of the month on which the financial statements are dated. This may not be consistent with the full year annual report data.
Valuation is complex, but we’re helping to make it simple.
see if TRS Information Technology could be overvalued or undervalued by looking at our comprehensive analysis, which includes Fair value estimates, risks and warnings, dividends, insider trading and financial health.
View free analysis
Have feedback on this article? Follow the content? keep in touch Contact us directly. Alternatively, email the editorial team at (at) simplewallst.com.
This article from Simply Wall St is general in nature. We only use unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended to provide financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or your financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
[ad_2]
Source link