Xinjiang Tianshan Animal Husbandry Bio-engineering Co., Ltd.'s (SZSE:300313) largest shareholders are private companies who were rewarded as market cap surged CN¥185m last week

Key Insights

• Xinjiang Tianshan Animal Husbandry Bio-engineering's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 53% of the business is held by the top 5 shareholders
• 12% of Xinjiang Tianshan Animal Husbandry Bio-engineering is held by insiders

A look at the shareholders of Xinjiang Tianshan Animal Husbandry Bio-engineering Co., Ltd. (SZSE:300313) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 41% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies were the biggest beneficiaries of last week’s 11% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Xinjiang Tianshan Animal Husbandry Bio-engineering.

View our latest analysis for Xinjiang Tianshan Animal Husbandry Bio-engineering

What Does The Institutional Ownership Tell Us About Xinjiang Tianshan Animal Husbandry Bio-engineering?

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.

Xinjiang Tianshan Animal Husbandry Bio-engineering already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Xinjiang Tianshan Animal Husbandry Bio-engineering's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Xinjiang Tianshan Animal Husbandry Bio-engineering. The company's largest shareholder is Huzhou Haohui Enterprise Management Consulting Co., Ltd., with ownership of 22%. Meanwhile, the second and third largest shareholders, hold 12% and 11%, of the shares outstanding, respectively.

Our research also brought to light the fact that roughly 53% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Xinjiang Tianshan Animal Husbandry Bio-engineering

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 Xinjiang Tianshan Animal Husbandry Bio-engineering Co., Ltd.. It has a market capitalization of just CN¥1.9b, and insiders have CN¥230m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 41% 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 Company Ownership

Our data indicates that Private Companies hold 41%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Xinjiang Tianshan Animal Husbandry Bio-engineering better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Xinjiang Tianshan Animal Husbandry Bio-engineering you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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