Individual investors in Daqian Ecology&Environment Group Co.,Ltd. (SHSE:603955) are its biggest bettors, and their bets paid off as stock gained 10% last week

Key Insights

• The considerable ownership by individual investors in Daqian Ecology&Environment GroupLtd indicates that they collectively have a greater say in management and business strategy
• The top 6 shareholders own 51% of the company
• Insiders own 25% of Daqian Ecology&Environment GroupLtd

If you want to know who really controls Daqian Ecology&Environment Group Co.,Ltd. (SHSE:603955), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 45% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, individual investors collectively scored the highest last week as the company hit CN¥2.7b market cap following a 10% gain in the stock.

Let's delve deeper into each type of owner of Daqian Ecology&Environment GroupLtd, beginning with the chart below.

Check out our latest analysis for Daqian Ecology&Environment GroupLtd

What Does The Institutional Ownership Tell Us About Daqian Ecology&Environment GroupLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Since institutions own only a small portion of Daqian Ecology&Environment GroupLtd, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

We note that hedge funds don't have a meaningful investment in Daqian Ecology&Environment GroupLtd. Jian Hong Luan is currently the largest shareholder, with 23% of shares outstanding. With 10% and 7.7% of the shares outstanding respectively, Anhui Xinhua Distribution Group Holding Company Ltd. and Shenzhen Suyuan Technology Development Co., Ltd. are the second and third largest shareholders. Furthermore, CEO Zheng An Wang is the owner of 1.2% of the company's shares.

We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 Daqian Ecology&Environment GroupLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

It seems insiders own a significant proportion of Daqian Ecology&Environment Group Co.,Ltd.. It has a market capitalization of just CN¥2.7b, and insiders have CN¥691m worth of shares in their own names. 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

With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Daqian Ecology&Environment GroupLtd. 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

We can see that Private Companies own 29%, of the shares on issue. 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. For instance, we've identified 2 warning signs for Daqian Ecology&Environment GroupLtd that you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.