Private companies are Ningxia Baofeng Energy Group Co., Ltd.'s (SHSE:600989) biggest owners and were hit after market cap dropped CN¥4.9b

Key Insights

• Ningxia Baofeng Energy Group's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 2 investors have a majority stake in the company with 70% ownership
• Insiders own 35% of Ningxia Baofeng Energy Group

If you want to know who really controls Ningxia Baofeng Energy Group Co., Ltd. (SHSE:600989), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 36% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 35% came under pressure after market cap dropped to CN¥116b last week,private companies took the most losses.

Let's delve deeper into each type of owner of Ningxia Baofeng Energy Group, beginning with the chart below.

Check out our latest analysis for Ningxia Baofeng Energy Group

What Does The Institutional Ownership Tell Us About Ningxia Baofeng Energy Group?

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.

As you can see, institutional investors have a fair amount of stake in Ningxia Baofeng Energy Group. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Ningxia Baofeng Energy Group, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Ningxia Baofeng Energy Group. The company's largest shareholder is Ningxia Baofeng Group Co.,Ltd., with ownership of 36%. Yanbao Dang is the second largest shareholder owning 35% of common stock, and CITIC Securities Company Limited, Asset Management Arm holds about 0.7% of the company stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 70% stake.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Ningxia Baofeng Energy Group

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that insiders maintain a significant holding in Ningxia Baofeng Energy Group Co., Ltd.. Insiders own CN¥41b worth of shares in the CN¥116b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ningxia Baofeng Energy Group. 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 36%, 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:

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. To that end, you should be aware of the 2 warning signs we've spotted with Ningxia Baofeng Energy Group .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.