Jiangsu Shuangxing Color Plastic New Materials Co., Ltd.'s (SZSE:002585) market cap up CN¥390m last week, benefiting both retail investors who own 57% as well as insiders

Key Insights

• The considerable ownership by retail investors in Jiangsu Shuangxing Color Plastic New Materials indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 43% of the company
• Insider ownership in Jiangsu Shuangxing Color Plastic New Materials is 30%

Every investor in Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. (SZSE:002585) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While retail investors were the group that benefitted the most from last week’s CN¥390m market cap gain, insiders too had a 30% share in those profits.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangsu Shuangxing Color Plastic New Materials.

Check out our latest analysis for Jiangsu Shuangxing Color Plastic New Materials

What Does The Institutional Ownership Tell Us About Jiangsu Shuangxing Color Plastic New Materials?

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 Jiangsu Shuangxing Color Plastic New Materials. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Hedge funds don't have many shares in Jiangsu Shuangxing Color Plastic New Materials. The company's CEO Peifu Wu is the largest shareholder with 26% of shares outstanding. The second and third largest shareholders are Suqian Dizhicheng Investment Consulting Co., Ltd. and Suqian Qiheng Investment Co., Ltd., with an equal amount of shares to their name at 5.3%.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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

Insider Ownership Of Jiangsu Shuangxing Color Plastic New Materials

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.

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 maintain a significant holding in Jiangsu Shuangxing Color Plastic New Materials Co., Ltd.. Insiders have a CN¥2.0b stake in this CN¥6.9b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 57% stake in Jiangsu Shuangxing Color Plastic New Materials, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 11%, of the Jiangsu Shuangxing Color Plastic New Materials stock. 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.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.