Individual investors among HuBei NengTer Technology CO.,Ltd's (SZSE:002102) largest shareholders, saw gain in holdings value after stock jumped 9.1% last week

Key Insights

• Significant control over HuBei NengTer TechnologyLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• 45% of the business is held by the top 19 shareholders
• Insiders own 20% of HuBei NengTer TechnologyLtd

Every investor in HuBei NengTer Technology CO.,Ltd (SZSE:002102) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors were the biggest beneficiaries of last week’s 9.1% gain.

Let's take a closer look to see what the different types of shareholders can tell us about HuBei NengTer TechnologyLtd.

View our latest analysis for HuBei NengTer TechnologyLtd

What Does The Lack Of Institutional Ownership Tell Us About HuBei NengTer TechnologyLtd?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of HuBei NengTer TechnologyLtd, for yourself, below.

Hedge funds don't have many shares in HuBei NengTer TechnologyLtd. Our data shows that Jingzhou City Development Holding Group Co., Ltd. is the largest shareholder with 13% of shares outstanding. With 8.8% and 6.8% of the shares outstanding respectively, Liequan Chen and Haixiong Deng are the second and third largest shareholders. Note that the second and third-largest shareholders are also Top Key Executive and Vice Chairman, respectively, meaning that the company's top shareholders are insiders.

A deeper look at our ownership data shows that the top 19 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of HuBei NengTer TechnologyLtd

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.

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 HuBei NengTer Technology CO.,Ltd. Insiders own CN¥1.4b worth of shares in the CN¥6.9b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 55% stake in HuBei NengTer TechnologyLtd, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

We can see that Private Companies own 25%, of the shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand HuBei NengTer TechnologyLtd better, we need to consider many other factors. For example, we've discovered 2 warning signs for HuBei NengTer TechnologyLtd that you should be aware of before investing here.

Of course this may not be the best stock to buy. So take a peek at this free 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com