Changzhou Tenglong AutoPartsCo.,Ltd.'s (SHSE:603158) largest shareholders are retail investors who were rewarded as market cap surged CN¥345m last week

Key Insights

• Significant control over Changzhou Tenglong AutoPartsCo.Ltd by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 16 shareholders own 50% of the company
• Insider ownership in Changzhou Tenglong AutoPartsCo.Ltd is 17%

Every investor in Changzhou Tenglong AutoPartsCo.,Ltd. (SHSE:603158) should be aware of the most powerful shareholder groups. With 48% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, retail investors benefitted the most after the company's market cap rose by CN¥345m last week.

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?

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.

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. 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 Changzhou Tenglong AutoPartsCo.Ltd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Changzhou Tenglong AutoPartsCo.Ltd. Our data shows that Tenglong Technology Group Co., Ltd. is the largest shareholder with 28% of shares outstanding. With 14% and 2.0% of the shares outstanding respectively, Xue Zhen Jiang and Liufang Wang 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.

A closer look at our ownership figures suggests that the top 16 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

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. 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 Changzhou Tenglong AutoPartsCo.,Ltd.. Insiders have a CN¥586m stake in this CN¥3.5b business. 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 48% stake in Changzhou Tenglong AutoPartsCo.Ltd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 28%, of the company's shares. 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. For example, we've discovered 1 warning sign for Changzhou Tenglong AutoPartsCo.Ltd that you should be aware of before investing here.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.