Canmax Technologies Co., Ltd.'s (SZSE:300390) market cap up CN¥577m last week, benefiting both retail investors who own 53% as well as insiders

Key Insights

• The considerable ownership by retail investors in Canmax Technologies indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 45% of the company
• Insiders own 34% of Canmax Technologies

If you want to know who really controls Canmax Technologies Co., Ltd. (SZSE:300390), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 53% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 4.1% increase in the stock price last week, retail investors profited the most, but insiders who own 34% 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 Canmax Technologies.

See our latest analysis for Canmax Technologies

What Does The Institutional Ownership Tell Us About Canmax Technologies?

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 Canmax Technologies 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. 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 Canmax Technologies, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Canmax Technologies. Zhenhua Pei is currently the company's largest shareholder with 24% of shares outstanding. With 8.1% and 1.4% of the shares outstanding respectively, Jianfen Rong and JP Morgan Asset Management are the second and third largest shareholders.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Canmax Technologies

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

It seems insiders own a significant proportion of Canmax Technologies Co., Ltd.. Insiders own CN¥4.9b worth of shares in the CN¥15b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 53% of Canmax Technologies shares. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Canmax Technologies is showing 2 warning signs in our investment analysis , you should know about...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

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