Anshan Senyuan Road and Bridge Co., Ltd's (SZSE:300210) market cap dropped CN¥513m last week; Retail investors bore the brunt

Key Insights

• Anshan Senyuan Road and Bridge's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 17 shareholders own 41% of the company
• Insider ownership in Anshan Senyuan Road and Bridge is 22%

Every investor in Anshan Senyuan Road and Bridge Co., Ltd (SZSE:300210) should be aware of the most powerful shareholder groups. With 59% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While the holdings of retail investors took a hit after last week’s 8.7% price drop, insiders with their 22% also suffered.

In the chart below, we zoom in on the different ownership groups of Anshan Senyuan Road and Bridge.

Check out our latest analysis for Anshan Senyuan Road and Bridge

What Does The Institutional Ownership Tell Us About Anshan Senyuan Road and Bridge?

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.

Less than 5% of Anshan Senyuan Road and Bridge is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

We note that hedge funds don't have a meaningful investment in Anshan Senyuan Road and Bridge. Looking at our data, we can see that the largest shareholder is Beijing Zhongke Information Control Innovation and Entrepreneurship Technology Development Co., Ltd. with 17% of shares outstanding. Songsen Guo is the second largest shareholder owning 15% of common stock, and Guangtian Qi holds about 4.8% of the company stock.

On studying our ownership data, we found that 17 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 Anshan Senyuan Road and Bridge

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems insiders own a significant proportion of Anshan Senyuan Road and Bridge Co., Ltd. Insiders have a CN¥1.2b stake in this CN¥5.4b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 59% of Anshan Senyuan Road and Bridge shares. 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 17%, 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:

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. For example, we've discovered 2 warning signs for Anshan Senyuan Road and Bridge that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.