Anhui Bossco Environmental Protection Technology Co.,Ltd.'s (SZSE:300422) stock price dropped 21% last week; retail investors would not be happy

Key Insights

• Significant control over Anhui Bossco Environmental Protection TechnologyLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 25 investors have a majority stake in the company with 48% ownership
• Insider ownership in Anhui Bossco Environmental Protection TechnologyLtd is 16%

A look at the shareholders of Anhui Bossco Environmental Protection Technology Co.,Ltd. (SZSE:300422) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 52% ownership. 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 21% decline in share price, retail investors suffered the most losses.

Let's delve deeper into each type of owner of Anhui Bossco Environmental Protection TechnologyLtd, beginning with the chart below.

Check out our latest analysis for Anhui Bossco Environmental Protection TechnologyLtd

What Does The Institutional Ownership Tell Us About Anhui Bossco Environmental Protection TechnologyLtd?

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.

Less than 5% of Anhui Bossco Environmental Protection TechnologyLtd is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Anhui Bossco Environmental Protection TechnologyLtd is not owned by hedge funds. The company's largest shareholder is Guangzhou Industrial Investment and Capital Operation Holding Group Ltd., with ownership of 19%. With 9.8% and 9.4% of the shares outstanding respectively, Ningguo State-owned Capital Holding Group Co., Ltd. and Shuangfei Wang are the second and third largest shareholders. Additionally, the company's CEO Hai Nong Song directly holds 1.9% of the total shares outstanding.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. 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 Bossco Environmental Protection TechnologyLtd

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.

Our information suggests that insiders maintain a significant holding in Anhui Bossco Environmental Protection Technology Co.,Ltd.. It has a market capitalization of just CN¥2.2b, and insiders have CN¥365m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 52% of Anhui Bossco Environmental Protection TechnologyLtd shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

Our data indicates that Private Companies hold 29%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Anhui Bossco Environmental Protection TechnologyLtd is showing 2 warning signs in our investment analysis , and 1 of those is 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.