Qingdao TGOOD Electric Co., Ltd.'s (SZSE:300001) top owners are individual investors with 46% stake, while 32% is held by private equity firms

Key Insights

• The considerable ownership by individual investors in Qingdao TGOOD Electric indicates that they collectively have a greater say in management and business strategy
• A total of 19 investors have a majority stake in the company with 50% ownership
• Institutions own 18% of Qingdao TGOOD Electric

Every investor in Qingdao TGOOD Electric Co., Ltd. (SZSE:300001) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, private equity firms make up 32% of the company’s shareholders.

Let's delve deeper into each type of owner of Qingdao TGOOD Electric, beginning with the chart below.

Check out our latest analysis for Qingdao TGOOD Electric

What Does The Institutional Ownership Tell Us About Qingdao TGOOD Electric?

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.

We can see that Qingdao TGOOD Electric 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. 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 Qingdao TGOOD Electric's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Qingdao TGOOD Electric. Our data shows that Qingdao Derui Investment Co., Ltd. is the largest shareholder with 32% of shares outstanding. Zhongtai Securities (Shanghai) Asset Management Co.,Ltd. is the second largest shareholder owning 4.2% of common stock, and E Fund Management Co., Ltd. holds about 1.9% of the company stock.

A closer look at our ownership figures suggests that the top 19 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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 Qingdao TGOOD Electric

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 most recent data indicates that insiders own some shares in Qingdao TGOOD Electric Co., Ltd.. The insiders have a meaningful stake worth CN¥725m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

With a 46% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Qingdao TGOOD Electric. 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 Equity Ownership

With a stake of 32%, private equity firms could influence the Qingdao TGOOD Electric board. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Qingdao TGOOD Electric , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.