Argus (Shanghai) Textile Chemicals Co.,Ltd.'s (SHSE:603790) largest shareholder, CEO Bing Xie sees holdings value fall by 14% following recent drop

Key Insights

• Insiders appear to have a vested interest in Argus (Shanghai) Textile ChemicalsLtd's growth, as seen by their sizeable ownership
• A total of 3 investors have a majority stake in the company with 61% ownership
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Argus (Shanghai) Textile Chemicals Co.,Ltd. (SHSE:603790) should be aware of the most powerful shareholder groups. With 66% stake, individual insiders possess the maximum shares in the company. 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 14% 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 Argus (Shanghai) Textile ChemicalsLtd.

Check out our latest analysis for Argus (Shanghai) Textile ChemicalsLtd

What Does The Institutional Ownership Tell Us About Argus (Shanghai) Textile ChemicalsLtd?

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.

Institutions have a very small stake in Argus (Shanghai) Textile ChemicalsLtd. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Argus (Shanghai) Textile ChemicalsLtd. Looking at our data, we can see that the largest shareholder is the CEO Bing Xie with 29% of shares outstanding. With 18% and 14% of the shares outstanding respectively, Zhedong Gu and Yihua Zheng are the second and third largest shareholders. Interestingly, the second and third-largest shareholders also happen to be the Senior Key Executive and Member of the Board of Directors, respectively. This once again signifies considerable insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Argus (Shanghai) Textile ChemicalsLtd

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 information suggests that insiders own more than half of Argus (Shanghai) Textile Chemicals Co.,Ltd.. This gives them effective control of the company. Given it has a market cap of CN¥1.8b, that means they have CN¥1.2b worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Argus (Shanghai) Textile ChemicalsLtd. 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.

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. To that end, you should learn about the 3 warning signs we've spotted with Argus (Shanghai) Textile ChemicalsLtd (including 1 which is significant) .

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.