Stock Analysis

Private companies among Xinjiang Xuefeng Sci-Tech(Group)Co.,Ltd's (SHSE:603227) largest stockholders and were hit after last week's 5.3% price drop

SHSE:603227
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Key Insights

  • Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • The top 5 shareholders own 51% of the company
  • 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 Xinjiang Xuefeng Sci-Tech(Group)Co.,Ltd (SHSE:603227), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 46% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 5.3% decline in share price, private companies suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd.

Check out our latest analysis for Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd

ownership-breakdown
SHSE:603227 Ownership Breakdown January 5th 2025

What Does The Institutional Ownership Tell Us About Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd?

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 Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SHSE:603227 Earnings and Revenue Growth January 5th 2025

Hedge funds don't have many shares in Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd. Our data shows that Xinjiang Agriculture and Animal Husbandry Investment (Group) Co., Ltd. is the largest shareholder with 34% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.7% and 3.9%, of the shares outstanding, respectively.

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 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 Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 most recent data indicates that insiders own less than 1% of Xinjiang Xuefeng Sci-Tech(Group)Co.,Ltd. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CN¥30m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 42% stake in Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd. 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

Our data indicates that Private Companies hold 46%, 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.

Public Company Ownership

It appears to us that public companies own 5.7% of Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd .

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.