The recent pullback must have dismayed Hoyuan Green Energy Co., Ltd. (SHSE:603185) insiders who own 43% of the company

Key Insights

• Hoyuan Green Energy's significant insider ownership suggests inherent interests in company's expansion
• A total of 5 investors have a majority stake in the company with 52% ownership
• Institutions own 17% of Hoyuan Green Energy

To get a sense of who is truly in control of Hoyuan Green Energy Co., Ltd. (SHSE:603185), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 43% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 12% decline in share price, insiders suffered the most losses.

Let's delve deeper into each type of owner of Hoyuan Green Energy, beginning with the chart below.

Check out our latest analysis for Hoyuan Green Energy

What Does The Institutional Ownership Tell Us About Hoyuan Green Energy?

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.

Hoyuan Green Energy 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. 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 Hoyuan Green Energy's earnings history below. Of course, the future is what really matters.

Hoyuan Green Energy is not owned by hedge funds. Our data shows that Jianliang Yang is the largest shareholder with 29% of shares outstanding. Hong Hang is the second largest shareholder owning 13% of common stock, and Jiangsu Jinpu Private Equity Fund Management Co., Ltd. holds about 4.7% of the company stock. Additionally, the company's CEO Hao Yang directly holds 0.7% of the total shares outstanding.

Our research also brought to light the fact that roughly 52% 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Hoyuan Green Energy

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our information suggests that insiders maintain a significant holding in Hoyuan Green Energy Co., Ltd.. Insiders own CN¥5.0b worth of shares in the CN¥12b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hoyuan Green Energy. 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.

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 Hoyuan Green Energy (including 1 which doesn't sit too well with us) .

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.

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