Inner Mongolia Yuan Xing Energy Company Limited's (SZSE:000683) market cap surged CN¥941m last week, individual investors who have a lot riding on the company were rewarded

Key Insights

• Significant control over Inner Mongolia Yuan Xing Energy by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 12 shareholders own 50% of the company
• Institutional ownership in Inner Mongolia Yuan Xing Energy is 20%

Every investor in Inner Mongolia Yuan Xing Energy Company Limited (SZSE:000683) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 45% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, individual investors were the biggest beneficiaries of last week’s 4.8% gain.

In the chart below, we zoom in on the different ownership groups of Inner Mongolia Yuan Xing Energy.

Check out our latest analysis for Inner Mongolia Yuan Xing Energy

What Does The Institutional Ownership Tell Us About Inner Mongolia Yuan Xing Energy?

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.

Inner Mongolia Yuan Xing Energy 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. 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 Inner Mongolia Yuan Xing Energy's earnings history below. Of course, the future is what really matters.

Inner Mongolia Yuan Xing Energy is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is The Inner Mongolia Berun Group Co., Ltd. with 31% of shares outstanding. With 3.7% and 3.0% of the shares outstanding respectively, Dacheng Fund Management Co., Ltd. and AEGON-Industrial Fund Management Co. Ltd. are the second and third largest shareholders.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Inner Mongolia Yuan Xing Energy

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders own shares in Inner Mongolia Yuan Xing Energy Company Limited. The insiders have a meaningful stake worth CN¥270m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Inner Mongolia Yuan Xing Energy. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 32%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Inner Mongolia Yuan Xing Energy better, we need to consider many other factors. For example, we've discovered 3 warning signs for Inner Mongolia Yuan Xing Energy that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.