Shenzhen Dobot Corp Ltd (HKG:2432) surges 20%; individual investors who own 58% shares profited along with institutions
Key Insights
- The considerable ownership by individual investors in Shenzhen Dobot indicates that they collectively have a greater say in management and business strategy
- The top 20 shareholders own 42% of the company
- Insiders have been selling lately
If you want to know who really controls Shenzhen Dobot Corp Ltd (HKG:2432), 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 investors with 58% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
While individual investors were the group that benefitted the most from last week’s HK$2.8b market cap gain, institutions too had a 19% share in those profits.
Let's delve deeper into each type of owner of Shenzhen Dobot, beginning with the chart below.
View our latest analysis for Shenzhen Dobot
What Does The Institutional Ownership Tell Us About Shenzhen Dobot?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Shenzhen Dobot does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone 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 fast. It's therefore worth looking at Shenzhen Dobot's earnings history below. Of course, the future is what really matters.
Shenzhen Dobot is not owned by hedge funds. The company's CEO Peichao Liu is the largest shareholder with 17% of shares outstanding. The second and third largest shareholders are Shenzhen Capital Group Co., Ltd. and Shenzhen Green Pine Growth Fund Management Co., Ltd., with an equal amount of shares to their name at 4.9%.
On studying our ownership data, we found that 20 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Shenzhen Dobot
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Our most recent data indicates that insiders own a reasonable proportion of Shenzhen Dobot Corp Ltd. It is very interesting to see that insiders have a meaningful HK$3.1b stake in this HK$17b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public -- including retail investors -- own 58% of Shenzhen Dobot. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Shenzhen Dobot you should be aware of.
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.