Contemporary Amperex Technology Co., Limited's (SZSE:300750) largest shareholders are private companies with 33% ownership, individual investors own 31%

Key Insights

• The considerable ownership by private companies in Contemporary Amperex Technology indicates that they collectively have a greater say in management and business strategy
• The top 9 shareholders own 51% of the company
• Insider ownership in Contemporary Amperex Technology is 15%

A look at the shareholders of Contemporary Amperex Technology Co., Limited (SZSE:300750) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 33% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And individual investors on the other hand have a 31% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about Contemporary Amperex Technology.

View our latest analysis for Contemporary Amperex Technology

What Does The Institutional Ownership Tell Us About Contemporary Amperex Technology?

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.

As you can see, institutional investors have a fair amount of stake in Contemporary Amperex Technology. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Contemporary Amperex Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Contemporary Amperex Technology. Xiamen Ruiting Investment Co., Ltd. is currently the largest shareholder, with 23% of shares outstanding. With 11% and 6.5% of the shares outstanding respectively, Huang Shilin and Feikai Holding Co., Ltd. are the second and third largest shareholders.

We did some more digging and found that 9 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Contemporary Amperex Technology

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.

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.

It seems insiders own a significant proportion of Contemporary Amperex Technology Co., Limited. It has a market capitalization of just CN¥1.1t, and insiders have CN¥166b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Contemporary Amperex Technology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 33%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Contemporary Amperex Technology better, we need to consider many other factors. For example, we've discovered 1 warning sign for Contemporary Amperex Technology that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.