Private companies in Ningbo Boway Alloy Material Company Limited (SHSE:601137) are its biggest bettors, and their bets paid off as stock gained 4.1% last week

Key Insights

• Significant control over Ningbo Boway Alloy Material by private companies implies that the general public has more power to influence management and governance-related decisions
• 51% of the business is held by the top 5 shareholders
• Institutional ownership in Ningbo Boway Alloy Material is 11%

A look at the shareholders of Ningbo Boway Alloy Material Company Limited (SHSE:601137) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 46% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private companies collectively scored the highest last week as the company hit CN¥16b market cap following a 4.1% gain in the stock.

Let's delve deeper into each type of owner of Ningbo Boway Alloy Material, beginning with the chart below.

See our latest analysis for Ningbo Boway Alloy Material

What Does The Institutional Ownership Tell Us About Ningbo Boway Alloy Material?

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.

We can see that Ningbo Boway Alloy Material does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Ningbo Boway Alloy Material's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Ningbo Boway Alloy Material. Boway Group is currently the company's largest shareholder with 32% of shares outstanding. Powerway Group Co.,Ltd. is the second largest shareholder owning 10% of common stock, and Shenzhen Qianhai Golden Eagle Asset Management Co., Ltd. holds about 3.6% of the company stock.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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

Insider Ownership Of Ningbo Boway Alloy Material

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Shareholders would probably be interested to learn that insiders own shares in Ningbo Boway Alloy Material Company Limited. This is a big company, so it is good to see this level of alignment. Insiders own CN¥507m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 38% 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.

Private Company Ownership

It seems that Private Companies own 46%, of the Ningbo Boway Alloy Material 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Ningbo Boway Alloy Material better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Ningbo Boway Alloy Material .

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.

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

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.