Jiangsu Boqian New Materials Stock Co., Ltd.'s (SHSE:605376) biggest owners are private companies who got richer after stock soared 22% last week

Key Insights

• The considerable ownership by private companies in Jiangsu Boqian New Materials Stock indicates that they collectively have a greater say in management and business strategy
• A total of 6 investors have a majority stake in the company with 52% ownership
• Institutional ownership in Jiangsu Boqian New Materials Stock is 20%

If you want to know who really controls Jiangsu Boqian New Materials Stock Co., Ltd. (SHSE:605376), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies collectively scored the highest last week as the company hit CN¥6.6b market cap following a 22% gain in the stock.

Let's delve deeper into each type of owner of Jiangsu Boqian New Materials Stock, beginning with the chart below.

See our latest analysis for Jiangsu Boqian New Materials Stock

What Does The Institutional Ownership Tell Us About Jiangsu Boqian New Materials Stock?

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.

Jiangsu Boqian New Materials Stock already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Jiangsu Boqian New Materials Stock's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Jiangsu Boqian New Materials Stock. Ningbo Guanghongyuan Investment Partnership Enterprise (Limited Partnership) is currently the largest shareholder, with 20% of shares outstanding. Ningbo Zhongzhi Jucheng Investment Partnership Enterprise (Limited Partnership) is the second largest shareholder owning 8.4% of common stock, and Ningbo Shenyang Venture Capital Partnership Enterprise (Limited Partnership) holds about 6.9% of the company stock. In addition, we found that Gangqiang Chen, the CEO has 6.5% of the shares allocated to their name.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Jiangsu Boqian New Materials Stock

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

We can report that insiders do own shares in Jiangsu Boqian New Materials Stock Co., Ltd.. In their own names, insiders own CN¥432m worth of stock in the CN¥6.6b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 28% stake in the company, and hence can't easily be ignored. 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 46%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Jiangsu Boqian New Materials Stock you should be aware of, and 1 of them shouldn't be ignored.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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