Ming Yang Anhui Tongyuan Environment Energy Saving Co.,Ltd's (SHSE:688679) CEO is the most bullish insider, and their stock value gained 11%last week

Key Insights

• Anhui Tongyuan Environment Energy SavingLtd's significant insider ownership suggests inherent interests in company's expansion
• The top 2 shareholders own 54% of the company
• 15% of Anhui Tongyuan Environment Energy SavingLtd is held by Institutions

A look at the shareholders of Anhui Tongyuan Environment Energy Saving Co.,Ltd (SHSE:688679) can tell us which group is most powerful. With 45% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥130m last week.

In the chart below, we zoom in on the different ownership groups of Anhui Tongyuan Environment Energy SavingLtd.

See our latest analysis for Anhui Tongyuan Environment Energy SavingLtd

What Does The Institutional Ownership Tell Us About Anhui Tongyuan Environment Energy SavingLtd?

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.

As you can see, institutional investors have a fair amount of stake in Anhui Tongyuan Environment Energy SavingLtd. 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 Tongyuan Environment Energy SavingLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Anhui Tongyuan Environment Energy SavingLtd. The company's CEO Ming Yang is the largest shareholder with 45% of shares outstanding. Anhui Yuantong Equity Investment Partnership Enterprise (Limited Partnership) is the second largest shareholder owning 9.1% of common stock, and Anhui Yunsong Investment Management Co., Ltd. holds about 3.3% of the company stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.

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. 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 Anhui Tongyuan Environment Energy SavingLtd

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our information suggests that insiders maintain a significant holding in Anhui Tongyuan Environment Energy Saving Co.,Ltd. Insiders have a CN¥587m stake in this CN¥1.3b business. 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

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Anhui Tongyuan Environment Energy SavingLtd. 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 9.1%, private equity firms could influence the Anhui Tongyuan Environment Energy SavingLtd board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Anhui Tongyuan Environment Energy SavingLtd (at least 1 which is concerning) , and understanding them should be part of your investment process.

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.