key insights

  • Contemporary Amperex Technology's significant private company ownership suggests important decisions are influenced by shareholders from broader society
  • 51% of the business is owned by the top 5 shareholders
  • Insiders own 15% of Contemporary Amperex Technology

Every investor in Contemporary Amperex Technology Co., Limited (SZSE:300750) should be aware of the most powerful shareholder groups. The group with the largest share of the pie is private companies with 33% ownership. In other words, this group faces the greatest upside potential (or downside risk).

As a result, the stock rose 15% last week, reaching a market capitalization of C$809 billion, giving it the highest score among all private companies.

Let's take a closer look to see what the different types of shareholders can tell us about Contemporary Amperex Technology.

Check out our latest analysis on modern Amperex technology.

SZSE:300750 Ownership breakdown March 15, 2024

What does institutional ownership tell us about modern Amperex technology?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.

Contemporary Amperex Technology already has a share registry. In fact, they own a significant stake in the company. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They also sometimes make mistakes. If multiple financial institutions change their view on a stock at the same time, you could see the stock price drop fast. It is therefore worth checking Contemporary Amperex Technology's earnings history, below. Of course, what really matters is the future.

SZSE:300750 Earnings and Revenue Growth March 15, 2024

Contemporary Amperex Technology is not owned by hedge funds. The company's largest shareholder is Xiamen Ruiting Investment Co., Ltd., with ownership of 23%. Mr. Huang Shilin is the second largest shareholder with 11% of the common stock, and Hikai Holding Co., Ltd. holds approximately 6.5% of the company's stock.

Our research also revealed that around 51% of the company is controlled by the top 5 shareholders, suggesting that these owners exercise significant influence over the business .

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are predicting.

Insider ownership of modern Amperex technology

The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. A company's management runs the business, but the CEO answers to the board, even if he or she is a member of the board.

Insider ownership is positive when it signals leaders 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 depending on the situation.

It appears that insiders own a significant portion of Contemporary Amperex Technology Co., Limited. It has a market capitalization of just CA$809b, but insiders have CA$123b worth of shares in their own names. That's very important. Most would say this shows good alignment with shareholders, especially for a company of this size. You can click here to see if insiders have been buying or selling.

Public ownership

The general public, typically retail investors, owns 25% of Contemporary Amperex Technology's shares. While this size of ownership may not be enough to sway policy decisions in their favor, they can still collectively influence company policy.

private equity ownership

The private equity firm holds a 6.5% stake and may influence the Contemporary Amperex Technology Board of Directors. Although there are occasional cases where private equity exists for a long period of time, private equity generally has a short investment horizon and, as the name suggests, does not invest in many public companies. After a while, they may consider selling their capital and redeploying it elsewhere.

Private company ownership

It appears that private companies own 33% of Contemporary Amperex Technology. Private companies may qualify as related parties. Insiders may have an interest in a public company through ownership in a private company rather than in their individual capacity. Although it is difficult to draw broad conclusions, it is worth noting as an area with room for further research.

Next steps:

It's always worth thinking about the different groups who own shares in a company. However, to better understand his modern Amperex technology, many other factors need to be considered.

I like to dive deeper Analyze how a company has performed in the past.You can access this interactive graph Check past earnings, revenue, and cash flow for free.

If you want to know what analysts are predicting in terms of future growth, don't miss this free Report on analyst forecasts.

Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.

Valuation is complex, but we help make it simple.

Check out our comprehensive analysis, including below, to see if modern Amperex technology is potentially overvalued or undervalued. Fair value estimates, risks and caveats, dividends, insider trading, and financial health.

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

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