Key Insights

• Insiders appear to have a vested interest in Chuzhou Duoli Automotive Technology’s growth, as seen by their sizeable ownership
• A total of 2 investors have a majority stake in the company with 71% ownership
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Chuzhou Duoli Automotive Technology Co., Ltd. (SZSE:001311), then you’ll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 74% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week’s 7.7% decline in share price, insiders suffered the most losses.

Let’s delve deeper into each type of owner of Chuzhou Duoli Automotive Technology, beginning with the chart below.

See our latest analysis for Chuzhou Duoli Automotive Technology

What Does The Institutional Ownership Tell Us About Chuzhou Duoli Automotive Technology?

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.

Institutions have a very small stake in Chuzhou Duoli Automotive Technology. That indicates that the company is on the radar of some funds, but it isn’t particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. 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.

We note that hedge funds don’t have a meaningful investment in Chuzhou Duoli Automotive Technology. Dalong Cao is currently the company’s largest shareholder with 47% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 23% and 1.1%, of the shares outstanding, respectively. Yeping Zhang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Chuzhou Duoli Automotive 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. 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.

It seems that insiders own more than half the Chuzhou Duoli Automotive Technology Co., Ltd. stock. This gives them a lot of power. So they have a CN¥4.9b stake in this CN¥6.6b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Chuzhou Duoli Automotive Technology. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example – Chuzhou Duoli Automotive Technology has 2 warning signs (and 1 which is concerning) we think you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.