Every investor in Jinsanjiang (Zhaoqing) Silicon Material Company Limited (SZSE:301059) should be aware of the most powerful shareholder groups. With 57% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies as a group endured the highest losses last week after market cap fell by CN¥567m.

In the chart below, we zoom in on the different ownership groups of Jinsanjiang (Zhaoqing) Silicon Material.

View our latest analysis for Jinsanjiang (Zhaoqing) Silicon Material

What Does The Institutional Ownership Tell Us About Jinsanjiang (Zhaoqing) Silicon Material?

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.

As you can see, institutional investors have a fair amount of stake in Jinsanjiang (Zhaoqing) Silicon Material. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Jinsanjiang (Zhaoqing) Silicon Material's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Jinsanjiang (Zhaoqing) Silicon Material. The company's largest shareholder is Guangzhou Feixue Group Co., Ltd., with ownership of 44%. With 13% and 7.0% of the shares outstanding respectively, Guangzhou Saina Equity Investment Partnership Enterprise (Limited Partnership) and Guofa Zhao are the second and third largest shareholders. Guofa Zhao, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Additionally, the company's CEO Zhenxue Ren directly holds 7.0% of the total shares outstanding.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Jinsanjiang (Zhaoqing) Silicon Material

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Jinsanjiang (Zhaoqing) Silicon Material Company Limited. Insiders have a CN¥387m stake in this CN¥2.7b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 57%, of the Jinsanjiang (Zhaoqing) Silicon Material stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Jinsanjiang (Zhaoqing) Silicon Material (at least 2 which make us uncomfortable) , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.