Key Insights

• Significant insider control over iMotion Automotive Technology (Suzhou) implies vested interests in company growth
• A total of 4 investors have a majority stake in the company with 52% ownership
• Recent sales by insiders

Every investor in iMotion Automotive Technology (Suzhou) Co., Ltd. (HKG:1274) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion’s share in the company with 43% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Despite recent sales, insiders own the most shares in the company. As a result, they stand to gain the most after the stock gained 29% in the past week.

In the chart below, we zoom in on the different ownership groups of iMotion Automotive Technology (Suzhou).

See our latest analysis for iMotion Automotive Technology (Suzhou)

What Does The Institutional Ownership Tell Us About iMotion Automotive Technology (Suzhou)?

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.

Institutions have a very small stake in iMotion Automotive Technology (Suzhou). That indicates that the company is on the radar of some funds, but it isn’t particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

We note that hedge funds don’t have a meaningful investment in iMotion Automotive Technology (Suzhou). The company’s CEO Yang Song is the largest shareholder with 21% of shares outstanding. With 14% and 8.9% of the shares outstanding respectively, iMotion Automotive Technology (Suzhou) Co., Ltd, ESOP and Yukun Lu are the second and third largest shareholders. Interestingly, the third-largest shareholder, Yukun Lu is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company’s top shareholders.

On looking further, we found that 52% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of iMotion Automotive Technology (Suzhou)

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.

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 maintain a significant holding in iMotion Automotive Technology (Suzhou) Co., Ltd.. It has a market capitalization of just HK$4.2b, and insiders have HK$1.8b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over iMotion Automotive Technology (Suzhou). 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.

Private Equity Ownership

With a stake of 15%, private equity firms could influence the iMotion Automotive Technology (Suzhou) board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and — as the name suggests — don’t invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

We can see that Private Companies own 10%, of the shares on issue. 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 iMotion Automotive Technology (Suzhou) better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We’ve identified 2 warning signs with iMotion Automotive Technology (Suzhou) , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.