Owning 48% of Shenzhen Goodicks Technology Co., Ltd. ( SHSE:603160 ) means insiders have a significant investment in the company’s future.

Key Insights

If you want to know who really controls Shenzhen Goodix Technology Co., Ltd. (SHSE:603160), you need to look at the makeup of the company’s shareholder registry. The largest group of people holding shares in the company (about 48% to be exact) are individual insiders; in other words, the group that will stand to gain (or lose) the most from investing in the company.

Any decisions made by Shenzhen Goodicks Technology insiders regarding the company’s future will therefore be crucial for the company.

In the chart below, we highlight the different ownership groups in Shenzhen Goodicks Technology.

Read our latest analysis for Shenzhen Goodix Technology

What does institutional ownership say about Shenzhen Goodix Technology?

Institutions typically compare their own performance against a benchmark when reporting to their own investors, so when a stock is included in a major index, they often increase their interest in that stock. You can expect most companies to have some institutional investors on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Shenzhen Goodicks Technology. This means the analysts working for these institutions have looked at the stock and they like it. But, just like everyone else, the analysts could be wrong. When multiple institutions own a stock, there’s always a risk that it can get caught in a ‘crowded trade’. If such a trade goes wrong, multiple parties could compete to sell shares fast. This risk is higher in companies without a history of growth. You can see Shenzhen Goodicks Technology’s historic earnings and revenue below, but remember there’s always more to the story.

Shenzhen Goodicks Technology is not owned by hedge funds. Our data shows that the largest shareholder is the CEO, Fan Zhang, with 45% of shares outstanding. Incidentally, the second largest shareholder holds about 2.9% of the shares outstanding, and the third largest shareholder holds 2.5%.

After further investigation, we found that the top three shareholders collectively control more than half of the company’s shares, implying that they have considerable power to influence the company’s decisions.

While studying institutional ownership for a company can add value to your research, it is also a good idea to research analyst recommendations to get a deeper understand of a stock’s expected performance. There are plenty of analysts covering the stock, so you can look into forecast growth fairly easily.

Shenzhen Goodix Technology Insider Ownership

The definition of an insider varies slightly from country to country, but members of the board of directors always qualify. Company management should report to the board and the board should represent the interests of shareholders. Notably, top-level managers may themselves be board members.

While most view insider ownership as a positive because it can indicate the board is well aligned with other shareholders, in some cases it can lead to too much power being concentrated in one group.

The most recent data shows that insiders own a significant proportion of Shenzhen Goodicks Technology Co., Ltd. shares. The company’s market capitalization is just CNY31b, but insiders own CNY15b worth of shares in their own names. That’s a pretty significant number. Many will be pleased to see that the board is investing right along with them. You can also access this free chart showing recent transactions by insiders.

General public property

32% of Shenzhen Goodicks Technology’s shares are held by the general public, usually individual investors. While this size of ownership may not be enough to tilt policy decisions in their favor, they can still collectively influence company policies.

Next steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important to consider: the ever-present threat of investment risk. We’ve identified 1 warning sign We have partnered with Shenzhen Goodix Technology, and understanding them should be part of your investment process.

Finally The future is the most important thingYou can access this free We report analyst forecasts for the company.

Note: The figures in this article are calculated using data from the last 12 months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated, which may not match the figures in the annual report.

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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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