Insiders with their considerable ownership were the key benefactors as Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd. (SZSE:002540) touches CN¥7.7b market cap

Key Insights

• Jiangsu Asia-Pacific Light Alloy Technology's significant insider ownership suggests inherent interests in company's expansion
• A total of 3 investors have a majority stake in the company with 51% ownership
• Institutions own 10% of Jiangsu Asia-Pacific Light Alloy Technology

If you want to know who really controls Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd. (SZSE:002540), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 8.0% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangsu Asia-Pacific Light Alloy Technology.

View our latest analysis for Jiangsu Asia-Pacific Light Alloy Technology

What Does The Institutional Ownership Tell Us About Jiangsu Asia-Pacific Light Alloy Technology?

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.

We can see that Jiangsu Asia-Pacific Light Alloy Technology does have institutional investors; and they hold a good portion of the company's stock. 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 Asia-Pacific Light Alloy Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Jiangsu Asia-Pacific Light Alloy Technology. Looking at our data, we can see that the largest shareholder is Fuhai Zhou with 40% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.0% and 3.8%, of the shares outstanding, respectively.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Jiangsu Asia-Pacific Light Alloy Technology

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

Our most recent data indicates that insiders own the majority of Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd.. This means they can collectively make decisions for the company. That means insiders have a very meaningful CN¥4.0b stake in this CN¥7.7b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 38% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jiangsu Asia-Pacific Light Alloy Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. For instance, we've identified 2 warning signs for Jiangsu Asia-Pacific Light Alloy Technology (1 is a bit unpleasant) that you should be aware of.

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.