Jiangsu Xinquan Automotive Trim Co.,Ltd.'s (SHSE:603179) CEO Zhi Tang is the most upbeat insider, and their holdings increased by 9.3% last week

Key Insights

• Significant insider control over Jiangsu Xinquan Automotive TrimLtd implies vested interests in company growth
• The top 6 shareholders own 50% of the company
• 23% of Jiangsu Xinquan Automotive TrimLtd is held by Institutions

To get a sense of who is truly in control of Jiangsu Xinquan Automotive Trim Co.,Ltd. (SHSE:603179), it is important to understand the ownership structure of the business. With 39% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 9.3% gain.

Let's delve deeper into each type of owner of Jiangsu Xinquan Automotive TrimLtd, beginning with the chart below.

Check out our latest analysis for Jiangsu Xinquan Automotive TrimLtd

What Does The Institutional Ownership Tell Us About Jiangsu Xinquan Automotive TrimLtd?

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.

We can see that Jiangsu Xinquan Automotive TrimLtd does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Jiangsu Xinquan Automotive TrimLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiangsu Xinquan Automotive TrimLtd is not owned by hedge funds. With a 39% stake, CEO Zhi Tang is the largest shareholder. In comparison, the second and third largest shareholders hold about 2.7% and 2.6% of the stock.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Jiangsu Xinquan Automotive TrimLtd

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.

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 information suggests that insiders maintain a significant holding in Jiangsu Xinquan Automotive Trim Co.,Ltd.. It has a market capitalization of just CN¥23b, and insiders have CN¥9.0b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 35% stake in the company, and hence can't easily be ignored. 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 Xinquan Automotive TrimLtd better, we need to consider many other factors. Take risks for example - Jiangsu Xinquan Automotive TrimLtd has 2 warning signs (and 1 which is a bit concerning) we think you should know about.

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.