Insiders were the key beneficiaries as Nantong Xingqiu Graphite Co.,Ltd.'s (SHSE:688633) market cap rises to CN¥3.1b

Key Insights

• Insiders appear to have a vested interest in Nantong Xingqiu GraphiteLtd's growth, as seen by their sizeable ownership
• The largest shareholder of the company is Yi Zhang with a 53% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Nantong Xingqiu Graphite Co.,Ltd. (SHSE:688633) can tell us which group is most powerful. With 71% stake, individual insiders 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).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥296m last week.

Let's delve deeper into each type of owner of Nantong Xingqiu GraphiteLtd, beginning with the chart below.

View our latest analysis for Nantong Xingqiu GraphiteLtd

What Does The Institutional Ownership Tell Us About Nantong Xingqiu GraphiteLtd?

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.

Nantong Xingqiu GraphiteLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Nantong Xingqiu GraphiteLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Nantong Xingqiu GraphiteLtd. Looking at our data, we can see that the largest shareholder is Yi Zhang with 53% of shares outstanding. This implies that they have majority interest control of the future of the company. Shujuan Qian is the second largest shareholder owning 12% of common stock, and Bin Xia holds about 2.7% of the company stock. Bin Xia, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. In addition, we found that Jianjun Sun, the CEO has 0.8% of the shares allocated to their name.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Nantong Xingqiu GraphiteLtd

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. 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 information suggests that insiders own more than half of Nantong Xingqiu Graphite Co.,Ltd.. This gives them effective control of the company. Given it has a market cap of CN¥3.1b, that means they have CN¥2.2b worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 18% stake in Nantong Xingqiu GraphiteLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. To that end, you should be aware of the 1 warning sign we've spotted with Nantong Xingqiu GraphiteLtd .

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