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
• Institutional ownership in Inner Mongolia Junzheng Energy & Chemical GroupLtd is 11%

A look at the shareholders of Inner Mongolia Junzheng Energy & Chemical Group Co.,Ltd. (SHSE:601216) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 41% ownership. 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.

Let's delve deeper into each type of owner of Inner Mongolia Junzheng Energy & Chemical GroupLtd, beginning with the chart below.

Check out our latest analysis for Inner Mongolia Junzheng Energy & Chemical GroupLtd

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

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.

We can see that Inner Mongolia Junzheng Energy & Chemical GroupLtd does have institutional investors; and they hold a good portion of the company's stock. 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.

We note that hedge funds don't have a meaningful investment in Inner Mongolia Junzheng Energy & Chemical GroupLtd. Jiangtao Du is currently the company's largest shareholder with 32% of shares outstanding. Wuhai Junzheng Technology Industry Group Co., Ltd. is the second largest shareholder owning 21% of common stock, and Xiuying Tian holds about 9.1% 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 53% 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Inner Mongolia Junzheng Energy & Chemical GroupLtd

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.

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.

It seems insiders own a significant proportion of Inner Mongolia Junzheng Energy & Chemical Group Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥18b stake in this CN¥44b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Inner Mongolia Junzheng Energy & Chemical GroupLtd. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 21%, of the Inner Mongolia Junzheng Energy & Chemical GroupLtd stock. 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. Take risks for example - Inner Mongolia Junzheng Energy & Chemical GroupLtd has 4 warning signs (and 2 which are a bit concerning) 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.