Retail investors are Jiangsu LiXing General Steel Ball Co.,Ltd.'s (SZSE:300421) biggest owners and were hit after market cap dropped CN¥594m

Key Insights

• Significant control over Jiangsu LiXing General Steel BallLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 49% of the company
• Insider ownership in Jiangsu LiXing General Steel BallLtd is 33%

A look at the shareholders of Jiangsu LiXing General Steel Ball Co.,Ltd. (SZSE:300421) can tell us which group is most powerful. The group holding the most number of shares in the company, around 50% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 33% came under pressure after market cap dropped to CN¥2.7b last week,retail investors took the most losses.

Let's delve deeper into each type of owner of Jiangsu LiXing General Steel BallLtd, beginning with the chart below.

Check out our latest analysis for Jiangsu LiXing General Steel BallLtd

What Does The Institutional Ownership Tell Us About Jiangsu LiXing General Steel BallLtd?

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 Jiangsu LiXing General Steel BallLtd. 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. 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 LiXing General Steel BallLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiangsu LiXing General Steel BallLtd is not owned by hedge funds. Our data shows that Xiang Gui Shi is the largest shareholder with 26% of shares outstanding. With 3.9% and 3.1% of the shares outstanding respectively, Shanghai Orient Securities Asset Management Co., Ltd. and Guotai Asset Management Company Limited are the second and third largest shareholders.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where 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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Jiangsu LiXing General Steel BallLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Jiangsu LiXing General Steel Ball Co.,Ltd.. Insiders own CN¥907m worth of shares in the CN¥2.7b company. 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

With a 50% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jiangsu LiXing General Steel BallLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for Jiangsu LiXing General Steel BallLtd that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com