Anhui Transport Consulting & Design Institute Co.,Ltd.'s (SHSE:603357) market cap dropped CN¥494m last week; Private companies bore the brunt

Key Insights

• Anhui Transport Consulting & Design InstituteLtd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 50% of the business is held by the top 5 shareholders
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Anhui Transport Consulting & Design Institute Co.,Ltd. (SHSE:603357), then you'll have to look at the makeup of its share registry. With 47% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies as a group endured the highest losses last week after market cap fell by CN¥494m.

Let's delve deeper into each type of owner of Anhui Transport Consulting & Design InstituteLtd, beginning with the chart below.

Check out our latest analysis for Anhui Transport Consulting & Design InstituteLtd

What Does The Institutional Ownership Tell Us About Anhui Transport Consulting & Design InstituteLtd?

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.

We can see that Anhui Transport Consulting & Design InstituteLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Anhui Transport Consulting & Design InstituteLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Anhui Transport Consulting & Design InstituteLtd. Anhui Transportation Holding Group Co.,Ltd. is currently the largest shareholder, with 47% of shares outstanding. For context, the second largest shareholder holds about 0.8% of the shares outstanding, followed by an ownership of 0.7% by the third-largest shareholder.

Our research also brought to light the fact that roughly 50% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Anhui Transport Consulting & Design InstituteLtd

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.

We can see that insiders own shares in Anhui Transport Consulting & Design Institute Co.,Ltd.. As individuals, the insiders collectively own CN¥217m worth of the CN¥5.3b company. This shows at least some alignment. 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 Anhui Transport Consulting & Design InstituteLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 47%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Anhui Transport Consulting & Design InstituteLtd better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Anhui Transport Consulting & Design InstituteLtd you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.