Key Insights

• Insiders appear to have a vested interest in Guangdong Hoshion Industrial Aluminium's growth, as seen by their sizeable ownership
• The top 3 shareholders own 51% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Guangdong Hoshion Industrial Aluminium Co., Ltd. (SZSE:002824) should be aware of the most powerful shareholder groups. With 61% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit CN¥5.2b market cap following a 14% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Guangdong Hoshion Industrial Aluminium.

What Does The Institutional Ownership Tell Us About Guangdong Hoshion Industrial Aluminium?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Guangdong Hoshion Industrial Aluminium 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 Guangdong Hoshion Industrial Aluminium's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Guangdong Hoshion Industrial Aluminium. Looking at our data, we can see that the largest shareholder is the CEO Jianxiang Li with 34% of shares outstanding. With 13% and 4.0% of the shares outstanding respectively, Jiahui Huang and Jiong Jin are the second and third largest shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Guangdong Hoshion Industrial Aluminium

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 information suggests that insiders own more than half of Guangdong Hoshion Industrial Aluminium Co., Ltd.. This gives them effective control of the company. That means they own CN¥3.2b worth of shares in the CN¥5.2b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 33% stake in Guangdong Hoshion Industrial Aluminium. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Guangdong Hoshion Industrial Aluminium better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Guangdong Hoshion Industrial Aluminium .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.