Jiangsu Seagull Cooling Tower Co.,Ltd. (SHSE:603269) insiders, who hold 50% of the firm would be disappointed by the recent pullback

Key Insights

• Significant insider control over Jiangsu Seagull Cooling TowerLtd implies vested interests in company growth
• The top 6 shareholders own 51% of the company
• Institutional ownership in Jiangsu Seagull Cooling TowerLtd is 12%

Every investor in Jiangsu Seagull Cooling Tower Co.,Ltd. (SHSE:603269) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 50% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by CN¥260m.

Let's delve deeper into each type of owner of Jiangsu Seagull Cooling TowerLtd, beginning with the chart below.

View our latest analysis for Jiangsu Seagull Cooling TowerLtd

What Does The Institutional Ownership Tell Us About Jiangsu Seagull Cooling TowerLtd?

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 Jiangsu Seagull Cooling TowerLtd. 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 Jiangsu Seagull Cooling TowerLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Jiangsu Seagull Cooling TowerLtd is not owned by hedge funds. The company's largest shareholder is Zhu Ping Wu, with ownership of 18%. Ao Da Jin is the second largest shareholder owning 17% of common stock, and Hua Yang holds about 5.6% of the company stock. Hua Yang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. 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 Jiangsu Seagull Cooling TowerLtd

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.

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 the majority of Jiangsu Seagull Cooling Tower Co.,Ltd.. This means they can collectively make decisions for the company. So they have a CN¥903m stake in this CN¥1.8b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 35% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jiangsu Seagull Cooling TowerLtd. 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

It seems that Private Companies own 3.0%, of the Jiangsu Seagull Cooling TowerLtd 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:

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. Case in point: We've spotted 3 warning signs for Jiangsu Seagull Cooling TowerLtd you should be aware of.

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.

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