Xingyuan Environment Technology Co., Ltd.'s (SZSE:300266) last week's 8.8% decline must have disappointed individual investors who have a significant stake

Key Insights

• The considerable ownership by individual investors in Xingyuan Environment Technology indicates that they collectively have a greater say in management and business strategy
• 47% of the business is held by the top 22 shareholders
• Insider ownership in Xingyuan Environment Technology is 24%

A look at the shareholders of Xingyuan Environment Technology Co., Ltd. (SZSE:300266) can tell us which group is most powerful. With 53% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 8.8% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 24% stock also took a hit.

Let's delve deeper into each type of owner of Xingyuan Environment Technology, beginning with the chart below.

View our latest analysis for Xingyuan Environment Technology

What Does The Institutional Ownership Tell Us About Xingyuan Environment Technology?

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 Xingyuan Environment Technology 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Xingyuan Environment Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Xingyuan Environment Technology. Looking at our data, we can see that the largest shareholder is Yonghao Liu with 24% of shares outstanding. With 10% and 4.5% of the shares outstanding respectively, Shanghai Changfu Investment Management Co., Ltd. and Shanghai TYD Investment Management Co., Ltd. are the second and third largest shareholders.

On studying our ownership data, we found that 22 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 Xingyuan Environment Technology

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.

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 Xingyuan Environment Technology Co., Ltd.. Insiders have a CN¥963m stake in this CN¥4.0b 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 -- including retail investors -- own 53% of Xingyuan Environment Technology. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Xingyuan Environment Technology better, we need to consider many other factors. For instance, we've identified 2 warning signs for Xingyuan Environment Technology that you should be aware of.

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.