Anhui Chaoyue Environmental Protection Technology Co., Ltd.'s (SZSE:301049) CEO Guangrong Li is the most upbeat insider, and their holdings increased by 15% last week

Key Insights

• Insiders appear to have a vested interest in Anhui Chaoyue Environmental Protection Technology's growth, as seen by their sizeable ownership
• The top 2 shareholders own 58% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Anhui Chaoyue Environmental Protection Technology Co., Ltd. (SZSE:301049) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 73% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥258m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Anhui Chaoyue Environmental Protection Technology.

See our latest analysis for Anhui Chaoyue Environmental Protection Technology

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

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.

Since institutions own only a small portion of Anhui Chaoyue Environmental Protection Technology, 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. 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 Chaoyue Environmental Protection Technology is not owned by hedge funds. With a 29% stake, CEO Guangrong Li is the largest shareholder. In comparison, the second and third largest shareholders hold about 29% and 15% of the stock. Interestingly, the third-largest shareholder, Dekun Gao is also a Vice Chairman, again, indicating strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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

Insider Ownership Of Anhui Chaoyue Environmental Protection Technology

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems that insiders own more than half the Anhui Chaoyue Environmental Protection Technology Co., Ltd. stock. This gives them a lot of power. That means they own CN¥1.5b worth of shares in the CN¥2.0b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Anhui Chaoyue Environmental Protection Technology better, we need to consider many other factors. Be aware that Anhui Chaoyue Environmental Protection Technology is showing 2 warning signs in our investment analysis , you should know about...

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com