Key Insights

• Insiders appear to have a vested interest in Anhui Xinbo Aluminum's growth, as seen by their sizeable ownership
• 52% of the business is held by the top 7 shareholders
• Institutions own 27% of Anhui Xinbo Aluminum

Every investor in Anhui Xinbo Aluminum Co., Ltd. (SZSE:003038) should be aware of the most powerful shareholder groups. With 45% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week's 17% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Anhui Xinbo Aluminum.

What Does The Institutional Ownership Tell Us About Anhui Xinbo Aluminum?

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.

Anhui Xinbo Aluminum already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Anhui Xinbo Aluminum's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Anhui Xinbo Aluminum. Our data shows that Kaijian Tang is the largest shareholder with 32% of shares outstanding. Anhui Addor Huicheng Equity Investment Management Enterprise is the second largest shareholder owning 4.1% of common stock, and Zhengpei Li holds about 3.6% of the company stock. Zhengpei Li, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. Furthermore, CEO Weirong Chen is the owner of 2.2% of the company's shares.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Anhui Xinbo Aluminum

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 Anhui Xinbo Aluminum Co., Ltd.. Insiders own CN¥2.6b worth of shares in the CN¥5.9b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in Anhui Xinbo Aluminum. 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 3.6%, of the Anhui Xinbo Aluminum stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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. Case in point: We've spotted 3 warning signs for Anhui Xinbo Aluminum you should be aware of, and 2 of them are concerning.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.