Key Insights

• The considerable ownership by individual investors in Changzhou Tenglong AutoPartsCo.Ltd indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 8 shareholders
• 20% of Changzhou Tenglong AutoPartsCo.Ltd is held by insiders

To get a sense of who is truly in control of Changzhou Tenglong AutoPartsCo.,Ltd. (SHSE:603158), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 45% to be precise, is individual investors. 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, individual investors were the biggest beneficiaries of last week's 28% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Changzhou Tenglong AutoPartsCo.Ltd.

View our latest analysis for Changzhou Tenglong AutoPartsCo.Ltd

What Does The Institutional Ownership Tell Us About Changzhou Tenglong AutoPartsCo.Ltd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Changzhou Tenglong AutoPartsCo.Ltd. 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 Changzhou Tenglong AutoPartsCo.Ltd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Changzhou Tenglong AutoPartsCo.Ltd. Looking at our data, we can see that the largest shareholder is Tenglong Technology Group Co., Ltd. with 27% of shares outstanding. With 14% and 4.2% of the shares outstanding respectively, Xue Zhen Jiang and Xuan Zhong are the second and third largest shareholders. Xue Zhen Jiang, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 Changzhou Tenglong AutoPartsCo.Ltd

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 most recent data indicates that insiders own a reasonable proportion of Changzhou Tenglong AutoPartsCo.,Ltd.. It has a market capitalization of just CN¥5.8b, and insiders have CN¥1.2b worth of shares in their own names. 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 45% stake in Changzhou Tenglong AutoPartsCo.Ltd. 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.

Private Company Ownership

It seems that Private Companies own 27%, of the Changzhou Tenglong AutoPartsCo.Ltd 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Changzhou Tenglong AutoPartsCo.Ltd , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.