Following recent decline, Xinxiang Richful Lube Additive Co.,Ltd.'s (SZSE:300910) top shareholder CEO Chunxuan Guo sees holdings value drop by 3.7%

Key Insights

• Significant insider control over Xinxiang Richful Lube AdditiveLtd implies vested interests in company growth
• The top 2 shareholders own 51% of the company
• 30% of Xinxiang Richful Lube AdditiveLtd is held by Institutions

If you want to know who really controls Xinxiang Richful Lube Additive Co.,Ltd. (SZSE:300910), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 40% 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 as a group endured the highest losses after market cap fell by CN¥473m.

Let's delve deeper into each type of owner of Xinxiang Richful Lube AdditiveLtd, beginning with the chart below.

View our latest analysis for Xinxiang Richful Lube AdditiveLtd

What Does The Institutional Ownership Tell Us About Xinxiang Richful Lube AdditiveLtd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Xinxiang Richful Lube AdditiveLtd. 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. 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 Xinxiang Richful Lube AdditiveLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Xinxiang Richful Lube AdditiveLtd. With a 37% stake, CEO Chunxuan Guo is the largest shareholder. In comparison, the second and third largest shareholders hold about 14% and 4.4% of the stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Xinxiang Richful Lube AdditiveLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 Xinxiang Richful Lube Additive Co.,Ltd.. It has a market capitalization of just CN¥12b, and insiders have CN¥4.9b 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-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

With a stake of 14%, private equity firms could influence the Xinxiang Richful Lube AdditiveLtd 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Xinxiang Richful Lube AdditiveLtd (including 1 which is a bit unpleasant) .

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.