Retail investors account for 42% of Ningbo Ronbay New Energy Technology Co.,Ltd.'s (SHSE:688005) ownership, while private equity firms account for 30%

Key Insights

• The considerable ownership by retail investors in Ningbo Ronbay New Energy TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• The top 12 shareholders own 50% of the company
• Institutions own 21% of Ningbo Ronbay New Energy TechnologyLtd

If you want to know who really controls Ningbo Ronbay New Energy Technology Co.,Ltd. (SHSE:688005), 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 42% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And private equity firms on the other hand have a 30% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about Ningbo Ronbay New Energy TechnologyLtd.

Check out our latest analysis for Ningbo Ronbay New Energy TechnologyLtd

What Does The Institutional Ownership Tell Us About Ningbo Ronbay New Energy TechnologyLtd?

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 Ningbo Ronbay New Energy TechnologyLtd. 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. 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 Ningbo Ronbay New Energy TechnologyLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Ningbo Ronbay New Energy TechnologyLtd. Our data shows that Beijing Ronbay New Energy Investment Management Co., Ltd. is the largest shareholder with 30% of shares outstanding. For context, the second largest shareholder holds about 4.6% of the shares outstanding, followed by an ownership of 2.1% by the third-largest shareholder.

A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 50% implying that 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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Ningbo Ronbay New Energy TechnologyLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 less than 1% of Ningbo Ronbay New Energy Technology Co.,Ltd.. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CN¥54m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 42% stake in Ningbo Ronbay New Energy TechnologyLtd. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

Private equity firms hold a 30% stake in Ningbo Ronbay New Energy TechnologyLtd. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

Our data indicates that Private Companies hold 6.4%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Ningbo Ronbay New Energy TechnologyLtd better, we need to consider many other factors. For example, we've discovered 3 warning signs for Ningbo Ronbay New Energy TechnologyLtd (1 is concerning!) that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.