Jiangsu ToLand Alloy Co.,Ltd's (SZSE:300855) most bullish insider is CEO Baifang Wan, and their holdings value went up by 4.4% last week

Key Insights

• Insiders appear to have a vested interest in Jiangsu ToLand AlloyLtd's growth, as seen by their sizeable ownership
• A total of 4 investors have a majority stake in the company with 53% 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. The group holding the most number of shares in the company, around 49% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 4.4% gain.

In the chart below, we zoom in on the different ownership groups of Jiangsu ToLand AlloyLtd.

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.

Jiangsu ToLand AlloyLtd 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. 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 ToLand AlloyLtd, (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 ToLand AlloyLtd. The company's CEO Baifang Wan is the largest shareholder with 35% of shares outstanding. Jianping Chen is the second largest shareholder owning 6.7% of common stock, and E Fund Management Co., Ltd. holds about 6.2% of the company stock.

Our research also brought to light the fact that roughly 53% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Jiangsu ToLand AlloyLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 ToLand Alloy Co.,Ltd. Insiders own CN¥5.0b worth of shares in the CN¥10b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in Jiangsu ToLand AlloyLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. For example, we've discovered 2 warning signs for Jiangsu ToLand AlloyLtd (1 shouldn't be ignored!) that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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