Xinjiang Xuefeng Sci-Tech(Group)Co.,Ltd's (SHSE:603227) biggest owners are private companies who got richer after stock soared 6.4% last week

Key Insights

• The considerable ownership by private companies in Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 5 shareholders
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Xinjiang Xuefeng Sci-Tech(Group)Co.,Ltd (SHSE:603227) can tell us which group is most powerful. The group holding the most number of shares in the company, around 48% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies collectively scored the highest last week as the company hit CN¥7.9b market cap following a 6.4% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd.

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

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

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.

Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd 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 Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd. Xinjiang Xuefeng Investment Holding Co., Ltd. is currently the largest shareholder, with 34% of shares outstanding. With 7.7% and 3.9% of the shares outstanding respectively, Sichuan Golden-Elephant Sincerity Chemical Co. ,Ltd. and Anhui Jiangnan Chemical Industry Co.,Ltd. are the second and third largest shareholders.

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

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 data suggests that insiders own under 1% of Xinjiang Xuefeng Sci-Tech(Group)Co.,Ltd in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. Keep in mind that it's a big company, and the insiders own CN¥49m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 48%, of the shares on issue. 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

We can see that public companies hold 5.7% of the Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd better, we need to consider many other factors. Take risks for example - Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd has 1 warning sign we think you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.