Tongling Jingda Special Magnet Wire Co., Ltd. (SHSE:600577) surges 17%; retail investors who own 53% shares profited along with institutions

Key Insights

• The considerable ownership by retail investors in Tongling Jingda Special Magnet Wire indicates that they collectively have a greater say in management and business strategy
• 47% of the business is held by the top 25 shareholders
• Institutions own 16% of Tongling Jingda Special Magnet Wire

If you want to know who really controls Tongling Jingda Special Magnet Wire Co., Ltd. (SHSE:600577), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 53% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Retail investors gained the most after market cap touched CN¥10b last week, while institutions who own 16% also benefitted.

Let's delve deeper into each type of owner of Tongling Jingda Special Magnet Wire, beginning with the chart below.

See our latest analysis for Tongling Jingda Special Magnet Wire

What Does The Institutional Ownership Tell Us About Tongling Jingda Special Magnet Wire?

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.

As you can see, institutional investors have a fair amount of stake in Tongling Jingda Special Magnet Wire. 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. 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 Tongling Jingda Special Magnet Wire, (below). Of course, keep in mind that there are other factors to consider, too.

Tongling Jingda Special Magnet Wire is not owned by hedge funds. Our data shows that Tehua Investment Holding Co., Ltd. is the largest shareholder with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 9.3% of the stock.

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.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Tongling Jingda Special Magnet Wire

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own some shares in Tongling Jingda Special Magnet Wire Co., Ltd.. The insiders have a meaningful stake worth CN¥401m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 53% stake in Tongling Jingda Special Magnet Wire, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Equity Ownership

With a stake of 12%, private equity firms could influence the Tongling Jingda Special Magnet Wire board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

It seems that Private Companies own 14%, of the Tongling Jingda Special Magnet Wire stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 3 warning signs for Tongling Jingda Special Magnet Wire (1 can't be ignored!) 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.