Key Insights Leedarson IoT Technology’s significant insider ownership suggests inherent interests in company’s…Key Insights Leedarson IoT Technology’s significant insider ownership suggests inherent interests in company’s… Read More iot
Key Insights
Leedarson IoT Technology’s significant insider ownership suggests inherent interests in company’s expansion Jianghuai Li owns 65% of the company Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
If you want to know who really controls Leedarson IoT Technology Inc. (SHSE:605365), 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 85% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Clearly, insiders benefitted the most after the company’s market cap rose by CN¥438m last week.
In the chart below, we zoom in on the different ownership groups of Leedarson IoT Technology.
Check out our latest analysis for Leedarson IoT Technology
SHSE:605365 Ownership Breakdown September 25th 2024
What Does The Institutional Ownership Tell Us About Leedarson IoT Technology?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Since institutions own only a small portion of Leedarson IoT Technology, many may not have spent much time considering the stock. But it’s clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it’s the future that counts most.
SHSE:605365 Earnings and Revenue Growth September 25th 2024
Hedge funds don’t have many shares in Leedarson IoT Technology. The company’s CEO Jianghuai Li is the largest shareholder with 65% of shares outstanding. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. In comparison, the second and third largest shareholders hold about 18% and 2.0% of the stock. Note that two of the top three shareholders are also Senior Key Executive and Member of the Board of Directors, respectively, once again pointing to significant ownership by company insiders.
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. 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 Leedarson IoT Technology
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 own more than half of Leedarson IoT Technology Inc.. This gives them effective control of the company. Insiders own CN¥6.0b worth of shares in the CN¥7.0b company. That’s extraordinary! Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.
General Public Ownership
The general public– including retail investors — own 13% stake in the company, and hence can’t easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
It’s always worth thinking about the different groups who own shares in a company. But to understand Leedarson IoT Technology better, we need to consider many other factors. Case in point: We’ve spotted 2 warning signs for Leedarson IoT Technology you should be aware of.
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.
