Key Insights

• Insiders appear to have a vested interest in Zhangjiagang Haiguo New Energy Equipment Manufacturing's growth, as seen by their sizeable ownership
• A total of 4 investors have a majority stake in the company with 53% ownership
• Institutional ownership in Zhangjiagang Haiguo New Energy Equipment Manufacturing is 24%

Every investor in Zhangjiagang Haiguo New Energy Equipment Manufacturing Co., Ltd. (SZSE:301063) should be aware of the most powerful shareholder groups. With 42% 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¥370m.

In the chart below, we zoom in on the different ownership groups of Zhangjiagang Haiguo New Energy Equipment Manufacturing.

Check out our latest analysis for Zhangjiagang Haiguo New Energy Equipment Manufacturing

What Does The Institutional Ownership Tell Us About Zhangjiagang Haiguo New Energy Equipment Manufacturing?

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.

Zhangjiagang Haiguo New Energy Equipment Manufacturing 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Zhangjiagang Haiguo New Energy Equipment Manufacturing, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Zhangjiagang Haiguo New Energy Equipment Manufacturing. The company's largest shareholder is Xuehua Sheng, with ownership of 32%. In comparison, the second and third largest shareholders hold about 9.9% and 6.3% of the stock. Tianyu Sheng, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On looking further, we found that 53% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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 Zhangjiagang Haiguo New Energy Equipment Manufacturing

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Zhangjiagang Haiguo New Energy Equipment Manufacturing Co., Ltd.. It has a market capitalization of just CN¥1.9b, and insiders have CN¥793m worth of shares in their own names. 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

With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhangjiagang Haiguo New Energy Equipment Manufacturing. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 6.3% stake in Zhangjiagang Haiguo New Energy Equipment Manufacturing. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Zhangjiagang Haiguo New Energy Equipment Manufacturing has 2 warning signs we think you should be aware of.

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.