Guangdong Tianhe Agricultural Means of Production Co., Ltd.'s (SZSE:002999) biggest owners are individual investors who got richer after stock soared 19% last week

Key Insights

• The considerable ownership by individual investors in Guangdong Tianhe Agricultural Means of Production indicates that they collectively have a greater say in management and business strategy
• The top 21 shareholders own 42% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Guangdong Tianhe Agricultural Means of Production Co., Ltd. (SZSE:002999), then you'll have to look at the makeup of its share registry. With 58% stake, individual 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, individual investors collectively scored the highest last week as the company hit CN¥2.6b market cap following a 19% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Guangdong Tianhe Agricultural Means of Production.

View our latest analysis for Guangdong Tianhe Agricultural Means of Production

What Does The Institutional Ownership Tell Us About Guangdong Tianhe Agricultural Means of Production?

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.

Guangdong Tianhe Agricultural Means of Production 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 Guangdong Tianhe Agricultural Means of Production's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Guangdong Tianhe Agricultural Means of Production. The company's largest shareholder is Guangdong Supply and Marketing Cooperative, with ownership of 34%. In comparison, the second and third largest shareholders hold about 2.3% and 1.3% of the stock.

A deeper look at our ownership data shows that the top 21 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Guangdong Tianhe Agricultural Means of Production

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.

We can see that insiders own shares in Guangdong Tianhe Agricultural Means of Production Co., Ltd.. In their own names, insiders own CN¥53m worth of stock in the CN¥2.6b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 58% stake in Guangdong Tianhe Agricultural Means of Production, suggesting it is a fairly popular stock. 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 Company Ownership

It seems that Private Companies own 35%, of the Guangdong Tianhe Agricultural Means of Production stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the 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. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Guangdong Tianhe Agricultural Means of Production (of which 3 are a bit unpleasant!) you should know about.

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.