Asian Star Anchor Chain Co., Ltd. Jiangsu's (SHSE:601890) market cap up CN¥892m last week, benefiting both individual investors who own 53% as well as insiders

Key Insights

• The considerable ownership by individual investors in Asian Star Anchor Chain Jiangsu indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 46% of the company
• Insider ownership in Asian Star Anchor Chain Jiangsu is 38%

Every investor in Asian Star Anchor Chain Co., Ltd. Jiangsu (SHSE:601890) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company 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).

While individual investors were the group that reaped the most benefits after last week’s 12% price gain, insiders also received a 38% cut.

Let's delve deeper into each type of owner of Asian Star Anchor Chain Jiangsu, beginning with the chart below.

See our latest analysis for Asian Star Anchor Chain Jiangsu

What Does The Institutional Ownership Tell Us About Asian Star Anchor Chain Jiangsu?

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 Asian Star Anchor Chain Jiangsu. 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. 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 Asian Star Anchor Chain Jiangsu's earnings history below. Of course, the future is what really matters.

Asian Star Anchor Chain Jiangsu is not owned by hedge funds. Anxiang Tao is currently the largest shareholder, with 28% of shares outstanding. Xing Tao is the second largest shareholder owning 7.5% of common stock, and National Council for Social Security Fund holds about 1.2% of the company stock. Furthermore, CEO Liangfeng Tao is the owner of 0.5% of the company's shares.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Asian Star Anchor Chain Jiangsu

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Asian Star Anchor Chain Co., Ltd. Jiangsu. It has a market capitalization of just CN¥8.4b, and insiders have CN¥3.2b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public -- including retail investors -- own 53% of Asian Star Anchor Chain Jiangsu. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Asian Star Anchor Chain Jiangsu .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.