iMotion Automotive Technology (Suzhou): Insider Ownership Reigns at 43% Despite Recent Sales

Key Insights

• iMotion Automotive Technology (Suzhou) has strong insider control, suggesting a commitment to company success
• Four main investors hold a combined majority share of 52%
• Recent insider sales noted

If you’re looking into iMotion Automotive Technology (Suzhou) Co., Ltd. (HKG:1274), it’s important to know who the major shareholders are. Individual insiders own a hefty 43% of the company. This means they have a lot at stake, both positively and negatively.

Even after recent sales, insiders still hold the largest portion of shares. They likely stood to benefit from a recent 29% rise in stock price over the last week.

Below, we take a closer look at the ownership structure of iMotion Automotive Technology (Suzhou).

The Role of Institutional Ownership

Institutions usually prefer companies that are part of major indices. However, iMotion Automotive Technology (Suzhou) has little institutional ownership at this time. This doesn’t mean the company is unimportant; it just isn’t attracting major investment right now. If the company shows stronger performance ahead, that could change. Sometimes, when big funds start buying, prices tend to rise.

Hedge funds, interestingly, don’t hold significant stakes in iMotion Automotive Technology (Suzhou). The largest shareholder is CEO Yang Song, who owns 21% of shares. Other notable shareholders include iMotion’s Employee Stock Ownership Plan (ESOP) at 14% and Yukun Lu, who owns 8.9% and is also on the board. This shows a strong insider presence in the company’s leadership.

The top four shareholders control 52% of the company, meaning they have substantial influence over company decisions.

While it’s helpful to know about institutional ownership, it’s also good to check out analyst recommendations for a well-rounded view of the stock’s potential. More people may come to know about the stock as time goes on.

Insider Ownership Overview

The term “insider” refers to those within the company, typically including board members. While management runs the business, they ultimately answer to the board of directors.

High insider ownership can indicate that leaders think like true owners, which can be positive. However, it may also concentrate power among a few individuals, which can be concerning.

Insiders own a significant portion of iMotion Automotive Technology (Suzhou). With a market cap of around HK$4.2 billion, insiders currently hold shares worth about HK$1.8 billion. This points to continued ownership from the company’s founders.

Public and Private Ownership

The general public holds about 17% of the shares, giving individual investors a voice. Still, this might not be enough to sway major corporate decisions, especially if larger shareholders have different views.

Private equity firms own 15% of the shares, which means they may have some influence over the board. However, private equity often has shorter-term goals and might sell their holdings and invest elsewhere after a while.

Additionally, private companies hold around 10% of shares. These could be connected to insiders, but further investigation would be needed to draw any conclusions.

Final Thoughts

Understanding ownership structures is crucial when analyzing a company like iMotion Automotive Technology (Suzhou). It’s just as important to keep in mind potential investment risks. There are two warning signs related to iMotion that investors should consider.

Ultimately, thinking about the future and what it holds for iMotion is what matters most.

Note: Data presented here reflects a twelve-month period ending on the last month of the financial statements. This may not align with full 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.