Insiders with their considerable ownership were the key benefactors as Ganzhou Tengyuan Cobalt New Material Co., Ltd. (SZSE:301219) touches CN¥14b market cap

Key Insights

• Insiders appear to have a vested interest in Ganzhou Tengyuan Cobalt New Material's growth, as seen by their sizeable ownership
• A total of 4 investors have a majority stake in the company with 51% ownership
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Ganzhou Tengyuan Cobalt New Material Co., Ltd. (SZSE:301219), then you'll have to look at the makeup of its share registry. With 43% stake, individual insiders possess the maximum shares in the company. 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¥1.5b last week.

Let's delve deeper into each type of owner of Ganzhou Tengyuan Cobalt New Material, beginning with the chart below.

Check out our latest analysis for Ganzhou Tengyuan Cobalt New Material

What Does The Institutional Ownership Tell Us About Ganzhou Tengyuan Cobalt New Material?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Ganzhou Tengyuan Cobalt New Material already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Ganzhou Tengyuan Cobalt New Material, (below). Of course, keep in mind that there are other factors to consider, too.

Ganzhou Tengyuan Cobalt New Material is not owned by hedge funds. Jie Luo is currently the largest shareholder, with 25% of shares outstanding. Fubiao Xie is the second largest shareholder owning 11% of common stock, and Xiamen Tungsten Co.,Ltd. holds about 9.2% of the company stock. Fubiao Xie, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Ganzhou Tengyuan Cobalt New Material

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 most recent data indicates that insiders own a reasonable proportion of Ganzhou Tengyuan Cobalt New Material Co., Ltd.. Insiders own CN¥6.2b worth of shares in the CN¥14b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 26% stake in the company, and hence can't easily be ignored. 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 Equity Ownership

Private equity firms hold a 5.2% stake in Ganzhou Tengyuan Cobalt New Material. This suggests they can be influential in key policy decisions. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

It seems that Private Companies own 4.1%, of the Ganzhou Tengyuan Cobalt New Material stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

We can see that public companies hold 15% of the Ganzhou Tengyuan Cobalt New Material shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Ganzhou Tengyuan Cobalt New Material better, we need to consider many other factors. For example, we've discovered 2 warning signs for Ganzhou Tengyuan Cobalt New Material that you should be aware of before investing here.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.