Harbin Electric Corporation Jiamusi Electric Machine CO.,Ltd's (SZSE:000922) biggest owners are retail investors who got richer after stock soared 12% last week

Key Insights

• Harbin Electric Corporation Jiamusi Electric MachineLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 11 shareholders own 50% of the company
• Institutions own 12% of Harbin Electric Corporation Jiamusi Electric MachineLtd

To get a sense of who is truly in control of Harbin Electric Corporation Jiamusi Electric Machine CO.,Ltd (SZSE:000922), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 48% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, retail investors collectively scored the highest last week as the company hit CN¥6.6b market cap following a 12% gain in the stock.

Let's delve deeper into each type of owner of Harbin Electric Corporation Jiamusi Electric MachineLtd, beginning with the chart below.

Check out our latest analysis for Harbin Electric Corporation Jiamusi Electric MachineLtd

What Does The Institutional Ownership Tell Us About Harbin Electric Corporation Jiamusi Electric MachineLtd?

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 Harbin Electric Corporation Jiamusi Electric MachineLtd. 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. 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 Harbin Electric Corporation Jiamusi Electric MachineLtd, (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 Harbin Electric Corporation Jiamusi Electric MachineLtd. Looking at our data, we can see that the largest shareholder is Harbin Electric Corporation with 26% of shares outstanding. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 3.3% by the third-largest shareholder.

After doing some more digging, we found that the top 11 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Harbin Electric Corporation Jiamusi Electric MachineLtd

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.

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.

We can report that insiders do own shares in Harbin Electric Corporation Jiamusi Electric Machine CO.,Ltd. In their own names, insiders own CN¥157m worth of stock in the CN¥6.6b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

With a 48% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Harbin Electric Corporation Jiamusi Electric MachineLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 38%, of the Harbin Electric Corporation Jiamusi Electric MachineLtd stock. 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:

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 Harbin Electric Corporation Jiamusi Electric MachineLtd , and understanding them should be part of your investment process.

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.