Key Insights

• Insiders appear to have a vested interest in Jiangsu Tongli Risheng Machinery's growth, as seen by their sizeable ownership
• Guoping Li owns 61% of the company
• Institutions own 12% of Jiangsu Tongli Risheng Machinery

A look at the shareholders of Jiangsu Tongli Risheng Machinery Co., Ltd. (SHSE:605286) can tell us which group is most powerful. With 65% 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 as a group endured the highest losses after market cap fell by CN¥406m.

Let's delve deeper into each type of owner of Jiangsu Tongli Risheng Machinery, beginning with the chart below.

Check out our latest analysis for Jiangsu Tongli Risheng Machinery

What Does The Institutional Ownership Tell Us About Jiangsu Tongli Risheng Machinery?

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 Jiangsu Tongli Risheng Machinery 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 Jiangsu Tongli Risheng Machinery's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Jiangsu Tongli Risheng Machinery. Looking at our data, we can see that the largest shareholder is the CEO Guoping Li with 61% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. Zheng Li is the second largest shareholder owning 3.2% of common stock, and Danyang Heli Enterprise Management Center (Limited Partnership) holds about 2.8% of the company stock.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Jiangsu Tongli Risheng Machinery

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.

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 most recent data indicates that insiders own the majority of Jiangsu Tongli Risheng Machinery Co., Ltd.. This means they can collectively make decisions for the company. So they have a CN¥3.1b stake in this CN¥4.8b business. 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 20% stake in Jiangsu Tongli Risheng Machinery. 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 Jiangsu Tongli Risheng Machinery better, we need to consider many other factors. For instance, we've identified 1 warning sign for Jiangsu Tongli Risheng Machinery that you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.