Private companies among Nanjing Canatal Data-Centre Environmental Tech Co., Ltd's (SHSE:603912) largest stockholders and were hit after last week's 17% price drop

Key Insights

• Nanjing Canatal Data-Centre Environmental Tech's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 50% of the business is held by the top 5 shareholders
• 11% of Nanjing Canatal Data-Centre Environmental Tech is held by Institutions

If you want to know who really controls Nanjing Canatal Data-Centre Environmental Tech Co., Ltd (SHSE:603912), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 45% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to CN¥3.9b last week, private companies would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of Nanjing Canatal Data-Centre Environmental Tech.

Check out our latest analysis for Nanjing Canatal Data-Centre Environmental Tech

What Does The Institutional Ownership Tell Us About Nanjing Canatal Data-Centre Environmental Tech?

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 Nanjing Canatal Data-Centre Environmental Tech does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Nanjing Canatal Data-Centre Environmental Tech's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Nanjing Canatal Data-Centre Environmental Tech. Najing Kaide Investment Co., Ltd. is currently the company's largest shareholder with 29% of shares outstanding. Arling Investment Limited is the second largest shareholder owning 16% of common stock, and Shanghai Guotai Junan Securities Asset Management Co., Ltd. holds about 1.9% of the company stock.

On looking further, we found that 50% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Nanjing Canatal Data-Centre Environmental Tech

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.

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 data suggests that insiders own under 1% of Nanjing Canatal Data-Centre Environmental Tech Co., Ltd in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It has a market capitalization of just CN¥3.9b, and the board has only CN¥15m worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

With a 44% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Nanjing Canatal Data-Centre Environmental Tech. 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 45%, of the Nanjing Canatal Data-Centre Environmental Tech stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Nanjing Canatal Data-Centre Environmental Tech (at least 2 which shouldn't be ignored) , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.