Bai Fang Wan Jiangsu ToLand Alloy Co.,Ltd's (SZSE:300855) CEO is the most bullish insider, and their stock value gained 4.7%last week

Key Insights

• Significant insider control over Jiangsu ToLand AlloyLtd implies vested interests in company growth
• A total of 4 investors have a majority stake in the company with 51% ownership
• 23% of Jiangsu ToLand AlloyLtd is held by Institutions

To get a sense of who is truly in control of Jiangsu ToLand Alloy Co.,Ltd (SZSE:300855), it is important to understand the ownership structure of the business. With 49% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit CN¥8.8b market cap following a 4.7% gain in the stock.

Let's delve deeper into each type of owner of Jiangsu ToLand AlloyLtd, beginning with the chart below.

See our latest analysis for Jiangsu ToLand AlloyLtd

What Does The Institutional Ownership Tell Us About Jiangsu ToLand AlloyLtd?

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 ToLand AlloyLtd does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 ToLand AlloyLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiangsu ToLand AlloyLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Bai Fang Wan with 35% of shares outstanding. With 6.7% and 4.6% of the shares outstanding respectively, Jianping Chen and Harvest Fund Management Co. Ltd. are the second and third largest shareholders.

On looking further, we found that 51% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Jiangsu ToLand AlloyLtd

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.

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 information suggests that insiders maintain a significant holding in Jiangsu ToLand Alloy Co.,Ltd. It has a market capitalization of just CN¥8.8b, and insiders have CN¥4.3b worth of shares in their own names. That's quite significant. 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, who are usually individual investors, hold a 25% stake in Jiangsu ToLand AlloyLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu ToLand AlloyLtd better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Jiangsu ToLand AlloyLtd 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.