Tianli Lithium Energy Group Co., Ltd. (SZSE:301152) insiders, who hold 40% of the firm would be disappointed by the recent pullback

Key Insights

• Insiders appear to have a vested interest in Tianli Lithium Energy Group's growth, as seen by their sizeable ownership
• A total of 5 investors have a majority stake in the company with 52% ownership
• Institutional ownership in Tianli Lithium Energy Group is 13%

Every investor in Tianli Lithium Energy Group Co., Ltd. (SZSE:301152) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 40% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to CN¥3.9b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Tianli Lithium Energy Group, beginning with the chart below.

See our latest analysis for Tianli Lithium Energy Group

What Does The Institutional Ownership Tell Us About Tianli Lithium Energy Group?

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.

Tianli Lithium Energy Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Tianli Lithium Energy Group's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Tianli Lithium Energy Group. The company's largest shareholder is Wen Li, with ownership of 20%. For context, the second largest shareholder holds about 19% of the shares outstanding, followed by an ownership of 6.4% by the third-largest shareholder. Ruiqing Wang, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Tianli Lithium Energy Group

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.

It seems insiders own a significant proportion of Tianli Lithium Energy Group Co., Ltd.. Insiders have a CN¥1.6b stake in this CN¥3.9b 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, who are usually individual investors, hold a 39% stake in Tianli Lithium Energy Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 6.4%, private equity firms could influence the Tianli Lithium Energy Group board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Tianli Lithium Energy Group you should know about.

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.