The recent pullback must have dismayed Shanghai Putailai New Energy Technology Co.,Ltd. (SHSE:603659) insiders who own 37% of the company

Key Insights

• Significant insider control over Shanghai Putailai New Energy TechnologyLtd implies vested interests in company growth
• The top 4 shareholders own 53% of the company
• Institutional ownership in Shanghai Putailai New Energy TechnologyLtd is 19%

A look at the shareholders of Shanghai Putailai New Energy Technology Co.,Ltd. (SHSE:603659) can tell us which group is most powerful. The group holding the most number of shares in the company, around 37% to be precise, is individual insiders. 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 3.8% decline in share price, insiders suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai Putailai New Energy TechnologyLtd.

See our latest analysis for Shanghai Putailai New Energy TechnologyLtd

What Does The Institutional Ownership Tell Us About Shanghai Putailai New Energy TechnologyLtd?

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.

As you can see, institutional investors have a fair amount of stake in Shanghai Putailai New Energy TechnologyLtd. 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 Shanghai Putailai New Energy TechnologyLtd's earnings history below. Of course, the future is what really matters.

Shanghai Putailai New Energy TechnologyLtd is not owned by hedge funds. Feng Liang is currently the largest shareholder, with 25% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 9.4%, of the shares outstanding, respectively. Additionally, the company's CEO Wei Chen directly holds 8.3% of the total shares outstanding.

On looking further, we found that 53% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Shanghai Putailai New Energy TechnologyLtd

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. 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 information suggests that insiders maintain a significant holding in Shanghai Putailai New Energy Technology Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥11b stake in this CN¥29b 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

The general public-- including retail investors -- own 25% stake in the company, and hence can't easily be ignored. 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

We can see that Private Companies own 20%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Shanghai Putailai New Energy TechnologyLtd is showing 4 warning signs in our investment analysis , and 1 of those can't be ignored...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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