Retail investors are Harbin Electric Corporation Jiamusi Electric Machine CO.,Ltd's (SZSE:000922) biggest owners and were hit after market cap dropped CN¥611m

Key Insights

• The considerable ownership by retail investors in Harbin Electric Corporation Jiamusi Electric MachineLtd indicates that they collectively have a greater say in management and business strategy
• The top 9 shareholders own 50% of the company
• 15% of Harbin Electric Corporation Jiamusi Electric MachineLtd is held by Institutions

A look at the shareholders of Harbin Electric Corporation Jiamusi Electric Machine CO.,Ltd (SZSE:000922) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 44% 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 as a group endured the highest losses last week after market cap fell by CN¥611m.

In the chart below, we zoom in on the different ownership groups of Harbin Electric Corporation Jiamusi Electric MachineLtd.

See our latest analysis for Harbin Electric Corporation Jiamusi Electric MachineLtd

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

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 Harbin Electric Corporation Jiamusi Electric MachineLtd. 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 Harbin Electric Corporation Jiamusi Electric MachineLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Harbin Electric Corporation Jiamusi Electric MachineLtd. Our data shows that Harbin Electric Corporation is the largest shareholder with 26% of shares outstanding. With 11% and 5.0% of the shares outstanding respectively, Jiamusi Electrical Motor Factory Co,. Ltd. and National Council for Social Security Fund are the second and third largest shareholders.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Harbin Electric Corporation Jiamusi Electric MachineLtd

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.

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.

Shareholders would probably be interested to learn that insiders own shares in Harbin Electric Corporation Jiamusi Electric Machine CO.,Ltd. It has a market capitalization of just CN¥6.1b, and insiders have CN¥147m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 44% 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

We can see that Private Companies own 38%, of the shares on issue. 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 Harbin Electric Corporation Jiamusi Electric MachineLtd better, we need to consider many other factors. Take risks for example - Harbin Electric Corporation Jiamusi Electric MachineLtd has 2 warning signs we think you should be aware of.

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.