Henan Mingtai Al.Industrial Co.,Ltd.'s (SHSE:601677) last week's 3.3% decline must have disappointed retail investors who have a significant stake

Key Insights

• Significant control over Henan Mingtai Al.IndustrialLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 43% of the company
• Insiders own 20% of Henan Mingtai Al.IndustrialLtd

A look at the shareholders of Henan Mingtai Al.Industrial Co.,Ltd. (SHSE:601677) can tell us which group is most powerful. The group holding the most number of shares in the company, around 55% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While the holdings of retail investors took a hit after last week’s 3.3% price drop, insiders with their 20% also suffered.

Let's take a closer look to see what the different types of shareholders can tell us about Henan Mingtai Al.IndustrialLtd.

Check out our latest analysis for Henan Mingtai Al.IndustrialLtd

What Does The Institutional Ownership Tell Us About Henan Mingtai Al.IndustrialLtd?

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.

As you can see, institutional investors have a fair amount of stake in Henan Mingtai Al.IndustrialLtd. 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 Henan Mingtai Al.IndustrialLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Henan Mingtai Al.IndustrialLtd. Ting Yi Ma is currently the company's largest shareholder with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.3% and 2.8% of the stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Henan Mingtai Al.IndustrialLtd

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

Our information suggests that insiders maintain a significant holding in Henan Mingtai Al.Industrial Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥3.0b stake in this CN¥15b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 55% of Henan Mingtai Al.IndustrialLtd shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Henan Mingtai Al.IndustrialLtd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Henan Mingtai Al.IndustrialLtd (at least 1 which can't be ignored) , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.