Weiquan Gao Jiangxi GETO New Materials Corporation Limited's (SZSE:300986) CEO is the most bullish insider, and their stock value gained 13%last week

Key Insights

• Significant insider control over Jiangxi GETO New Materials implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 51% ownership
• Institutions own 15% of Jiangxi GETO New Materials

If you want to know who really controls Jiangxi GETO New Materials Corporation Limited (SZSE:300986), 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 45% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥237m last week.

Let's delve deeper into each type of owner of Jiangxi GETO New Materials, beginning with the chart below.

Check out our latest analysis for Jiangxi GETO New Materials

What Does The Institutional Ownership Tell Us About Jiangxi GETO New Materials?

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 Jiangxi GETO New Materials. 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 Jiangxi GETO New Materials, (below). Of course, keep in mind that there are other factors to consider, too.

Jiangxi GETO New Materials is not owned by hedge funds. With a 45% stake, CEO Weiquan Gao is the largest shareholder. Zhonggeng Fund Management Co., Ltd. is the second largest shareholder owning 5.6% of common stock, and Zhuhai Zhiyi Equity Investment Enterprise (Limited Partnership) holds about 4.9% of the company stock.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Jiangxi GETO New Materials

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Jiangxi GETO New Materials Corporation Limited. Insiders have a CN¥800m stake in this CN¥1.8b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 26% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 14%, of the company's shares. 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. For example, we've discovered 2 warning signs for Jiangxi GETO New Materials 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.