Shanghai Hajime Advanced Material Technology Co., Ltd.'s (SZSE:301000) CEO Xionghui Shao is the most upbeat insider, and their holdings increased by 7.7% last week

Key Insights

• Significant insider control over Shanghai Hajime Advanced Material Technology implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 52% ownership
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Shanghai Hajime Advanced Material Technology Co., Ltd. (SZSE:301000) should be aware of the most powerful shareholder groups. With 45% 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¥6.2b market cap following a 7.7% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai Hajime Advanced Material Technology.

See our latest analysis for Shanghai Hajime Advanced Material Technology

What Does The Institutional Ownership Tell Us About Shanghai Hajime Advanced Material Technology?

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.

As you can see, institutional investors have a fair amount of stake in Shanghai Hajime Advanced Material Technology. 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. 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 Shanghai Hajime Advanced Material Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Shanghai Hajime Advanced Material Technology is not owned by hedge funds. With a 45% stake, CEO Xionghui Shao is the largest shareholder. The second and third largest shareholders are Huzhou Xuanhe Industrial Investment Co., Ltd. and Ningbo Meishan Free Trade Port Zone Baizhao Investment Management Partnership Enterprise (LP), with an equal amount of shares to their name at 7.5%.

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 52% 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. 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 Shanghai Hajime Advanced Material Technology

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 Shanghai Hajime Advanced Material Technology Co., Ltd.. Insiders have a CN¥2.8b stake in this CN¥6.2b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Shanghai Hajime Advanced Material Technology. 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.

Private Company Ownership

It seems that Private Companies own 22%, of the Shanghai Hajime Advanced Material Technology stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Shanghai Hajime Advanced Material Technology is showing 3 warning signs in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.