Retail investors among Qingdao Tianneng Heavy Industries Co.,Ltd's (SZSE:300569) largest shareholders, saw gain in holdings value after stock jumped 9.8% last week

Key Insights

• Qingdao Tianneng Heavy IndustriesLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 47% of the business is held by the top 25 shareholders
• Insiders own 13% of Qingdao Tianneng Heavy IndustriesLtd

A look at the shareholders of Qingdao Tianneng Heavy Industries Co.,Ltd (SZSE:300569) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 52% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, retail investors benefitted the most after the company's market cap rose by CN¥511m last week.

In the chart below, we zoom in on the different ownership groups of Qingdao Tianneng Heavy IndustriesLtd.

Check out our latest analysis for Qingdao Tianneng Heavy IndustriesLtd

What Does The Institutional Ownership Tell Us About Qingdao Tianneng Heavy IndustriesLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Qingdao Tianneng Heavy IndustriesLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Qingdao Tianneng Heavy IndustriesLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Qingdao Tianneng Heavy IndustriesLtd is not owned by hedge funds. Our data shows that Zhuhai Port Holding Group Co,Ltd is the largest shareholder with 23% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.7% and 3.3%, of the shares outstanding, respectively.

On studying our ownership data, we found that 25 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Qingdao Tianneng Heavy IndustriesLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 a reasonable proportion of Qingdao Tianneng Heavy Industries Co.,Ltd. Insiders own CN¥720m worth of shares in the CN¥5.7b company. 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 52% of Qingdao Tianneng Heavy IndustriesLtd 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 26%, 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:

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 5 warning signs for Qingdao Tianneng Heavy IndustriesLtd (3 are concerning!) 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.