A look at the shareholders of Kunming Chuan Jin Nuo Chemical Co., Ltd. (SZSE:300505) can tell us which group is most powerful. With 47% stake, individual investors 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).

Following a 5.9% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 41% stock also took a hit.

Let's delve deeper into each type of owner of Kunming Chuan Jin Nuo Chemical, beginning with the chart below.

See our latest analysis for Kunming Chuan Jin Nuo Chemical

What Does The Institutional Ownership Tell Us About Kunming Chuan Jin Nuo Chemical?

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.

Kunming Chuan Jin Nuo Chemical already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Kunming Chuan Jin Nuo Chemical's historic earnings and revenue below, but keep in mind there's always more to the story.

Kunming Chuan Jin Nuo Chemical is not owned by hedge funds. Our data suggests that Meng Liu, who is also the company's Secretary, holds the most number of shares at 32%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. For context, the second largest shareholder holds about 4.0% of the shares outstanding, followed by an ownership of 2.3% by the third-largest shareholder. Furthermore, CEO Jia Gui Wei is the owner of 1.9% of the company's shares.

A closer look at our ownership figures suggests that the top 14 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Kunming Chuan Jin Nuo Chemical

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 Kunming Chuan Jin Nuo Chemical Co., Ltd.. Insiders have a CN¥2.2b stake in this CN¥5.5b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 47% stake in Kunming Chuan Jin Nuo Chemical. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Kunming Chuan Jin Nuo Chemical better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Kunming Chuan Jin Nuo Chemical (including 1 which is a bit concerning) .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.