Owning 41% in Inner Mongolia Junzheng Energy & Chemical Group Co.,Ltd. (SHSE:601216) means that insiders are heavily invested in the company's future

Key Insights

• Insiders appear to have a vested interest in Inner Mongolia Junzheng Energy & Chemical GroupLtd's growth, as seen by their sizeable ownership
• 53% of the business is held by the top 2 shareholders
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Inner Mongolia Junzheng Energy & Chemical Group Co.,Ltd. (SHSE:601216), it is important to understand the ownership structure of the business. With 41% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So, insiders of Inner Mongolia Junzheng Energy & Chemical GroupLtd have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

In the chart below, we zoom in on the different ownership groups of Inner Mongolia Junzheng Energy & Chemical GroupLtd.

View our latest analysis for Inner Mongolia Junzheng Energy & Chemical GroupLtd

What Does The Institutional Ownership Tell Us About Inner Mongolia Junzheng Energy & Chemical GroupLtd?

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.

Inner Mongolia Junzheng Energy & Chemical GroupLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Inner Mongolia Junzheng Energy & Chemical GroupLtd's earnings history below. Of course, the future is what really matters.

Inner Mongolia Junzheng Energy & Chemical GroupLtd is not owned by hedge funds. Jiangtao Du is currently the largest shareholder, with 32% of shares outstanding. With 21% and 9.1% of the shares outstanding respectively, Wuhai Junzheng Technology Industry Group Co., Ltd. and Xiuying Tian are the second and third largest 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 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Inner Mongolia Junzheng Energy & Chemical GroupLtd

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of Inner Mongolia Junzheng Energy & Chemical Group Co.,Ltd.. It has a market capitalization of just CN¥31b, and insiders have CN¥13b worth of shares in their own names. That's quite significant. 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

The general public, who are usually individual investors, hold a 28% stake in Inner Mongolia Junzheng Energy & Chemical GroupLtd. 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 21%, of the shares on issue. 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 Inner Mongolia Junzheng Energy & Chemical GroupLtd better, we need to consider many other factors. For example, we've discovered 1 warning sign for Inner Mongolia Junzheng Energy & Chemical GroupLtd that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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