Sunlands Technology Group’s (NYSE:STG) most bullish insider is chief executive Peng Ou, and the value of his holdings rose 12% last week

Key insights

• Sunlands Technology Group’s significant insider ownership suggests inherent interests in company expansion
• A total of 2 investors have a majority stake in the company with a 53% stake
• Property research, combined with past performance data, can help provide a good understanding of the opportunities in a stock

A look at Sunlands Technology Group (NYSE:STG) shareholders can tell us which group is more powerful. And the group that holds the biggest slice of the pie are individuals within the company, with a 53% share. In other words, the group will benefit the most if the shares rise (or will lose the most if there is a downturn).

As a result, insiders scored highest last week when the company hit a market cap of $127 million following a 12% share gain.

Let’s delve deeper into each type of Sunlands Technology Group owner, starting with the chart below.

See our latest analysis for Sunlands Technology Group

What does institutional ownership tell us about Sunlands Technology Group?

Institutional investors often compare their own returns to the returns of a commonly followed index. Therefore, they often consider buying larger companies included in the relevant benchmark index.

Since institutions only own a small part of Sunlands Technology Group, many may not have spent much time considering the stock. But it is clear that some did; and they liked it enough to buy it. If the company is growing profits, it could indicate that it is just starting to catch the attention of these deep-pocketed investors. Sometimes we see a stock price rise when a few large institutions want to buy a certain stock at the same time. The earnings and revenue history, which you can see below, could be useful in considering whether more institutional investors will want the stock. Of course, there are also many other factors to consider.

Sunlands Technology Group is not owned by hedge funds. Our data suggests that Peng Ou, who is also the company’s chief executive, holds the largest number of shares at 41%. When an insider owns a considerable amount of shares in a company, investors consider this a positive sign because it suggests that the insiders are willing to have their wealth tied to the company’s future. In comparison, the second and third largest shareholders hold about 12% and 8.2% of the shares. Furthermore, the company’s CEO, Tongbo Liu, directly holds 7.5% of the total outstanding shares.

A more detailed study of the shareholder register showed us that 2 of the main shareholders hold a considerable stake in the company, through their 53% stake.

While it makes sense to study a company’s institutional ownership data, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far as we know, there’s no analyst coverage of the company, so it’s probably flying under the radar.

Prime Ownership of Sunlands Technology Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company’s management reports to the board and the board must represent the interests of the shareholders. Notably, sometimes top managers themselves sit on the board.

Insider ownership is positive when it signals that leadership is thinking like the true owners of the company. However, high internal 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 own more than half of Sunlands Technology Group. This gives them effective control of the company. So they have a $68 million stake in this $127 million business. It’s good to see this level of investment. You can check here to see if these insiders have been buying recently.

General Public Property

With a 22% stake, the general public, made up mainly of individual investors, has some degree of influence over Sunlands Technology Group. While this size of ownership may not be enough to sway a political decision in your favor, it can still have a collective impact on company policies.

Private equity ownership

With a 12% stake, private equity firms could influence Sunlands Technology Group’s board. Some investors may be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the company. Alternatively, these holders can exit the investment after taking it public.

Public company ownership

We can see that public companies hold 8.2% of Sunlands Technology Group shares in issue. We cannot be sure, but it is quite possible that this is a strategic bet. Businesses can be similar or work together.

Next steps:

I find it very interesting to see who exactly owns a company. But to truly gain insights, we need to consider other information as well.

Many find it useful to analyze in depth a company’s past performance. You can access this detailed chart of past profits, revenues and cash flow.

If you would prefer to check out another company – one with potentially superior financials – then don’t miss this opportunity free list of interesting companies, backed by strong financial data.

Note: The values ​​in this article are calculated based on data from the last twelve months, which refer to the 12-month period ending on the last date of the month in which the financial statements are dated. This may not be consistent with the figures in the full annual report.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your objectives or financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St has no position in any of the stocks mentioned.