Retail investors among Jiangsu Zhongsheng Gaoke Environmental Co.,Ltd.'s (SZSE:002778) largest shareholders, saw gain in holdings value after stock jumped 14% last week

Key Insights

• The considerable ownership by retail investors in Jiangsu Zhongsheng Gaoke EnvironmentalLtd indicates that they collectively have a greater say in management and business strategy
• 48% of the business is held by the top 11 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Jiangsu Zhongsheng Gaoke Environmental Co.,Ltd. (SZSE:002778) should be aware of the most powerful shareholder groups. With 52% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, retail investors were the biggest beneficiaries of last week’s 14% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangsu Zhongsheng Gaoke EnvironmentalLtd.

Check out our latest analysis for Jiangsu Zhongsheng Gaoke EnvironmentalLtd

What Does The Institutional Ownership Tell Us About Jiangsu Zhongsheng Gaoke EnvironmentalLtd?

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 Zhongsheng Gaoke EnvironmentalLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Jiangsu Zhongsheng Gaoke EnvironmentalLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Jiangsu Zhongsheng Gaoke EnvironmentalLtd. Our data shows that Suzhou Wuzhong Tiankai Huida Equity Investment Partnership Enterprise (Limited Partnership) is the largest shareholder with 22% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.1% and 5.0% of the stock.

Our studies suggest that the top 11 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.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Jiangsu Zhongsheng Gaoke EnvironmentalLtd

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. 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.

We can report that insiders do own shares in Jiangsu Zhongsheng Gaoke Environmental Co.,Ltd.. As individuals, the insiders collectively own CN¥228m worth of the CN¥2.4b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 52% of Jiangsu Zhongsheng Gaoke EnvironmentalLtd. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Equity Ownership

With a stake of 22%, private equity firms could influence the Jiangsu Zhongsheng Gaoke EnvironmentalLtd board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

Our data indicates that Private Companies hold 11%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Jiangsu Zhongsheng Gaoke EnvironmentalLtd (at least 2 which are potentially serious) , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.