Private companies among Tianjin Guoan Mengguli New Materials Science & Technology Co., Ltd.'s (SZSE:301487) largest stockholders and were hit after last week's 5.8% price drop

Key Insights

• The considerable ownership by private companies in Tianjin Guoan Mengguli New Materials Science & Technology indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 5 shareholders
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Tianjin Guoan Mengguli New Materials Science & Technology Co., Ltd. (SZSE:301487), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 56% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 5.8% decline in share price, private companies suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Tianjin Guoan Mengguli New Materials Science & Technology.

See our latest analysis for Tianjin Guoan Mengguli New Materials Science & Technology

What Does The Institutional Ownership Tell Us About Tianjin Guoan Mengguli New Materials Science & 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.

Tianjin Guoan Mengguli New Materials Science & Technology 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. 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 Tianjin Guoan Mengguli New Materials Science & Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Tianjin Guoan Mengguli New Materials Science & Technology is not owned by hedge funds. The company's largest shareholder is Hengtong Group Co.,Ltd, with ownership of 34%. With 5.7% and 3.7% of the shares outstanding respectively, Yongbin Han and Beijing Yindi Investment Co., Ltd. are the second and third largest shareholders.

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.

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. 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 Tianjin Guoan Mengguli New Materials Science & 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.

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.

Shareholders would probably be interested to learn that insiders own shares in Tianjin Guoan Mengguli New Materials Science & Technology Co., Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥563m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Tianjin Guoan Mengguli New Materials Science & 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

It seems that Private Companies own 56%, of the Tianjin Guoan Mengguli New Materials Science & Technology stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the 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. Case in point: We've spotted 4 warning signs for Tianjin Guoan Mengguli New Materials Science & Technology you should be aware of, and 1 of them is a bit concerning.

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.