Private companies among Wuhan Tianyuan Environmental Protection Co.,LTD's (SZSE:301127) largest shareholders, saw gain in holdings value after stock jumped 9.2% last week

Key Insights

• The considerable ownership by private companies in Wuhan Tianyuan Environmental ProtectionLTD indicates that they collectively have a greater say in management and business strategy
• A total of 3 investors have a majority stake in the company with 54% ownership
• Institutional ownership in Wuhan Tianyuan Environmental ProtectionLTD is 14%

A look at the shareholders of Wuhan Tianyuan Environmental Protection Co.,LTD (SZSE:301127) can tell us which group is most powerful. The group holding the most number of shares in the company, around 39% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies collectively scored the highest last week as the company hit CN¥4.9b market cap following a 9.2% gain in the stock.

Let's delve deeper into each type of owner of Wuhan Tianyuan Environmental ProtectionLTD, beginning with the chart below.

See our latest analysis for Wuhan Tianyuan Environmental ProtectionLTD

What Does The Institutional Ownership Tell Us About Wuhan Tianyuan Environmental ProtectionLTD?

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.

As you can see, institutional investors have a fair amount of stake in Wuhan Tianyuan Environmental ProtectionLTD. 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 Wuhan Tianyuan Environmental ProtectionLTD's historic earnings and revenue below, but keep in mind there's always more to the story.

Wuhan Tianyuan Environmental ProtectionLTD is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Hubei Tianyuan Environmental Protection Group Co., Ltd. with 35% of shares outstanding. In comparison, the second and third largest shareholders hold about 15% and 3.7% of the stock. Furthermore, CEO Zhaowei Huang is the owner of 1.0% of the company's shares.

A more detailed study of the shareholder registry showed us that 3 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. 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 Wuhan Tianyuan Environmental ProtectionLTD

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

We can report that insiders do own shares in Wuhan Tianyuan Environmental Protection Co.,LTD. As individuals, the insiders collectively own CN¥109m worth of the CN¥4.9b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Wuhan Tianyuan Environmental ProtectionLTD. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 39%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

We can see that public companies hold 15% of the Wuhan Tianyuan Environmental ProtectionLTD shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. Take risks for example - Wuhan Tianyuan Environmental ProtectionLTD has 2 warning signs (and 1 which is potentially serious) we think you should know about.

Of course this may not be the best stock to buy. So take a peek at this free 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.