Zhejiang Tuna Environmental Science & TechnologyCo.,Ltd.'s (SHSE:603177) largest shareholders are private companies who were rewarded as market cap surged CN¥240m last week

Key Insights

• Significant control over Zhejiang Tuna Environmental Science & TechnologyCo.Ltd by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 2 shareholders own 54% of the company
• Insider ownership in Zhejiang Tuna Environmental Science & TechnologyCo.Ltd is 13%

A look at the shareholders of Zhejiang Tuna Environmental Science & TechnologyCo.,Ltd. (SHSE:603177) can tell us which group is most powerful. The group holding the most number of shares in the company, around 49% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, private companies benefitted the most after the company's market cap rose by CN¥240m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Zhejiang Tuna Environmental Science & TechnologyCo.Ltd.

See our latest analysis for Zhejiang Tuna Environmental Science & TechnologyCo.Ltd

What Does The Institutional Ownership Tell Us About Zhejiang Tuna Environmental Science & TechnologyCo.Ltd?

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.

Zhejiang Tuna Environmental Science & TechnologyCo.Ltd 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. 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 Zhejiang Tuna Environmental Science & TechnologyCo.Ltd, (below). Of course, keep in mind that there are other factors to consider, too.

Zhejiang Tuna Environmental Science & TechnologyCo.Ltd is not owned by hedge funds. The company's largest shareholder is Zhejiang Deneng Industry Holding Group Co., Ltd., with ownership of 42%. With 12% and 3.8% of the shares outstanding respectively, Meng Jin and Hangzhou Zhanchuang Enterprise Management Partnership are the second and third largest shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. 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 Zhejiang Tuna Environmental Science & TechnologyCo.Ltd

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. 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.

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 Zhejiang Tuna Environmental Science & TechnologyCo.,Ltd.. It has a market capitalization of just CN¥2.0b, and insiders have CN¥265m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 28% stake in the company, and hence can't easily be ignored. 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

Our data indicates that Private Companies hold 49%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Zhejiang Tuna Environmental Science & TechnologyCo.Ltd better, we need to consider many other factors. For instance, we've identified 1 warning sign for Zhejiang Tuna Environmental Science & TechnologyCo.Ltd that you should be aware of.

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.