Qinhuangdao Tianqin Equipment Manufacturing Co.,Ltd.'s (SZSE:300922) market cap rose CN¥269m last week; individual investors who hold 44% profited and so did insiders

Key Insights

• The considerable ownership by individual investors in Qinhuangdao Tianqin Equipment ManufacturingLtd indicates that they collectively have a greater say in management and business strategy
• The top 12 shareholders own 51% of the company
• 40% of Qinhuangdao Tianqin Equipment ManufacturingLtd is held by insiders

Every investor in Qinhuangdao Tianqin Equipment Manufacturing Co.,Ltd. (SZSE:300922) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 44% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While individual investors were the group that benefitted the most from last week’s CN¥269m market cap gain, insiders too had a 40% share in those profits.

Let's delve deeper into each type of owner of Qinhuangdao Tianqin Equipment ManufacturingLtd, beginning with the chart below.

See our latest analysis for Qinhuangdao Tianqin Equipment ManufacturingLtd

What Does The Institutional Ownership Tell Us About Qinhuangdao Tianqin Equipment ManufacturingLtd?

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.

Qinhuangdao Tianqin Equipment ManufacturingLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Qinhuangdao Tianqin Equipment ManufacturingLtd'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 Qinhuangdao Tianqin Equipment ManufacturingLtd. Jinsuo Song is currently the largest shareholder, with 29% of shares outstanding. For context, the second largest shareholder holds about 5.9% of the shares outstanding, followed by an ownership of 4.1% by the third-largest shareholder.

After doing some more digging, we found that the top 12 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Qinhuangdao Tianqin Equipment ManufacturingLtd

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 a reasonable proportion of Qinhuangdao Tianqin Equipment Manufacturing Co.,Ltd.. Insiders own CN¥905m worth of shares in the CN¥2.3b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 44% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Qinhuangdao Tianqin Equipment ManufacturingLtd. 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 Company Ownership

It seems that Private Companies own 6.3%, of the Qinhuangdao Tianqin Equipment ManufacturingLtd stock. 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:

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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Qinhuangdao Tianqin Equipment ManufacturingLtd (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com