CNNC Hua Yuan Titanium Dioxide Co., Ltd's (SZSE:002145) 7.3% gain last week benefited both individual investors who own 41% as well as insiders

Key Insights

• CNNC Hua Yuan Titanium Dioxide's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 7 investors have a majority stake in the company with 51% ownership
• Insiders own 38% of CNNC Hua Yuan Titanium Dioxide

Every investor in CNNC Hua Yuan Titanium Dioxide Co., Ltd (SZSE:002145) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 41% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 7.3% increase in the stock price last week, individual investors profited the most, but insiders who own 38% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about CNNC Hua Yuan Titanium Dioxide.

View our latest analysis for CNNC Hua Yuan Titanium Dioxide

What Does The Institutional Ownership Tell Us About CNNC Hua Yuan Titanium Dioxide?

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.

CNNC Hua Yuan Titanium Dioxide 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 CNNC Hua Yuan Titanium Dioxide's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in CNNC Hua Yuan Titanium Dioxide. The company's largest shareholder is Zelong Wang, with ownership of 35%. With 3.2% and 3.0% of the shares outstanding respectively, SDIC Unity Capital Co., Ltd. and Cnnc Hua Yuan Titanium Dioxide Co., Ltd, ESOP are the second and third largest shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 7 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of CNNC Hua Yuan Titanium Dioxide

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 most recent data indicates that insiders own a reasonable proportion of CNNC Hua Yuan Titanium Dioxide Co., Ltd. It is very interesting to see that insiders have a meaningful CN¥6.6b stake in this CN¥18b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 41% stake in CNNC Hua Yuan Titanium Dioxide. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand CNNC Hua Yuan Titanium Dioxide better, we need to consider many other factors. For example, we've discovered 3 warning signs for CNNC Hua Yuan Titanium Dioxide (1 is potentially serious!) that you should be aware of before investing here.

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.

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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.