XTC New Energy Materials(Xiamen) Co.,Ltd.'s (SHSE:688778) biggest owners are public companies who got richer after stock soared 4.8% last week

Key Insights

• Significant control over XTC New Energy Materials(Xiamen)Ltd by public companies implies that the general public has more power to influence management and governance-related decisions
• Xiamen Tungsten Co.,Ltd. owns 50% of the company
• 11% of XTC New Energy Materials(Xiamen)Ltd is held by Institutions

A look at the shareholders of XTC New Energy Materials(Xiamen) Co.,Ltd. (SHSE:688778) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies collectively scored the highest last week as the company hit CN¥16b market cap following a 4.8% gain in the stock.

Let's delve deeper into each type of owner of XTC New Energy Materials(Xiamen)Ltd, beginning with the chart below.

Check out our latest analysis for XTC New Energy Materials(Xiamen)Ltd

What Does The Institutional Ownership Tell Us About XTC New Energy Materials(Xiamen)Ltd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that XTC New Energy Materials(Xiamen)Ltd does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 XTC New Energy Materials(Xiamen)Ltd's historic earnings and revenue below, but keep in mind there's always more to the story.

XTC New Energy Materials(Xiamen)Ltd is not owned by hedge funds. Our data shows that Xiamen Tungsten Co.,Ltd. is the largest shareholder with 50% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. For context, the second largest shareholder holds about 8.0% of the shares outstanding, followed by an ownership of 7.3% by the third-largest shareholder.

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 XTC New Energy Materials(Xiamen)Ltd

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 16% stake in XTC New Energy Materials(Xiamen)Ltd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With an ownership of 8.0%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

Our data indicates that Private Companies hold 8.4%, 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.

Public Company Ownership

Public companies currently own 56% of XTC New Energy Materials(Xiamen)Ltd stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with XTC New Energy Materials(Xiamen)Ltd , and understanding them should be part of your investment process.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.