Anhui Huaqi Environmental Protection & Technology Co., Ltd.'s (SZSE:300929) market cap dropped CN¥219m last week; Individual investors bore the brunt

Key Insights

• Significant control over Anhui Huaqi Environmental Protection & Technology by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 45% of the company
• 14% of Anhui Huaqi Environmental Protection & Technology is held by insiders

A look at the shareholders of Anhui Huaqi Environmental Protection & Technology Co., Ltd. (SZSE:300929) can tell us which group is most powerful. With 55% stake, individual investors 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.

And last week, individual investors endured the biggest losses as the stock fell by 16%.

In the chart below, we zoom in on the different ownership groups of Anhui Huaqi Environmental Protection & Technology.

Check out our latest analysis for Anhui Huaqi Environmental Protection & Technology

What Does The Institutional Ownership Tell Us About Anhui Huaqi Environmental Protection & Technology?

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.

Anhui Huaqi Environmental Protection & Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Anhui Huaqi Environmental Protection & Technology's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Anhui Huaqi Environmental Protection & Technology. Ma'anshan Anhui University Of Technology Assets Management Co., Ltd. is currently the largest shareholder, with 14% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.6% and 4.3% of the stock. Additionally, the company's CEO Jie Zheng directly holds 2.5% of the total shares outstanding.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Anhui Huaqi Environmental Protection & Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own a reasonable proportion of Anhui Huaqi Environmental Protection & Technology Co., Ltd.. Insiders own CN¥159m worth of shares in the CN¥1.2b company. 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

The general public -- including retail investors -- own 55% of Anhui Huaqi Environmental Protection & Technology. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

It seems that Private Companies own 21%, of the Anhui Huaqi Environmental Protection & Technology stock. 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:

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 example, we've discovered 2 warning signs for Anhui Huaqi Environmental Protection & Technology that you should be aware of before investing here.

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.