Private companies among Shanxi Lu'an Environmental Energy Development Co., Ltd.'s (SHSE:601699) largest stockholders and were hit after last week's 6.4% price drop

Key Insights

• Shanxi Lu'an Environmental Energy Development's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• Shanxi State-owned Capital Operation Co., Ltd. owns 51% of the company
• 11% of Shanxi Lu'an Environmental Energy Development is held by Institutions

A look at the shareholders of Shanxi Lu'an Environmental Energy Development Co., Ltd. (SHSE:601699) can tell us which group is most powerful. We can see that private companies own the lion's share in the company 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 6.4% decline in share price, private companies suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Shanxi Lu'an Environmental Energy Development.

See our latest analysis for Shanxi Lu'an Environmental Energy Development

What Does The Institutional Ownership Tell Us About Shanxi Lu'an Environmental Energy Development?

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.

Shanxi Lu'an Environmental Energy Development 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 Shanxi Lu'an Environmental Energy Development's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Shanxi Lu'an Environmental Energy Development. Looking at our data, we can see that the largest shareholder is Shanxi State-owned Capital Operation Co., Ltd. with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Meanwhile, the second and third largest shareholders, hold 0.9% and 0.9%, of the shares outstanding, respectively.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Shanxi Lu'an Environmental Energy Development

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

Our data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public, who are usually individual investors, hold a 37% stake in Shanxi Lu'an Environmental Energy Development. 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

Our data indicates that Private Companies hold 52%, of the company's shares. 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.

Next Steps:

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

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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