Private companies who hold 37% of Tianjin Meiteng Technology Co., Ltd (SHSE:688420) gained 15%, insiders profited as well

Key Insights

• Significant control over Tianjin Meiteng Technology by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 5 shareholders own 52% of the company
• Insiders own 27% of Tianjin Meiteng Technology

Every investor in Tianjin Meiteng Technology Co., Ltd (SHSE:688420) should be aware of the most powerful shareholder groups. With 37% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 15% increase in the stock price last week, private companies profited the most, but insiders who own 27% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Tianjin Meiteng Technology, beginning with the chart below.

Check out our latest analysis for Tianjin Meiteng Technology

What Does The Institutional Ownership Tell Us About Tianjin Meiteng Technology?

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 Tianjin Meiteng Technology. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Tianjin Meiteng Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Tianjin Meiteng Technology. Our data shows that Tianjin Meiteng Asset Management Co., Ltd. is the largest shareholder with 20% of shares outstanding. Taiyou Li is the second largest shareholder owning 14% of common stock, and Dadi Engineering Development (Group) Co. Ltd. holds about 10.0% of the company stock. Additionally, the company's CEO Xingguo Liang directly holds 1.9% of the total shares outstanding.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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 Tianjin Meiteng Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that insiders maintain a significant holding in Tianjin Meiteng Technology Co., Ltd. It has a market capitalization of just CN¥2.0b, and insiders have CN¥543m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. 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 Company Ownership

It seems that Private Companies own 37%, of the Tianjin Meiteng Technology 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:

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. For instance, we've identified 3 warning signs for Tianjin Meiteng Technology (2 are potentially serious) that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.