Individual investors who hold 35% of Jiangsu HHCK Advanced Materials Co.,Ltd (SHSE:688535) gained 7.0%, insiders profited as well

Key Insights

• The considerable ownership by individual investors in Jiangsu HHCK Advanced MaterialsLtd indicates that they collectively have a greater say in management and business strategy
• The top 8 shareholders own 52% of the company
• 33% of Jiangsu HHCK Advanced MaterialsLtd is held by insiders

Every investor in Jiangsu HHCK Advanced Materials Co.,Ltd (SHSE:688535) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 35% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that reaped the most benefits after last week’s 7.0% price gain, insiders also received a 33% cut.

Let's delve deeper into each type of owner of Jiangsu HHCK Advanced MaterialsLtd, beginning with the chart below.

View our latest analysis for Jiangsu HHCK Advanced MaterialsLtd

What Does The Institutional Ownership Tell Us About Jiangsu HHCK Advanced MaterialsLtd?

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.

We can see that Jiangsu HHCK Advanced MaterialsLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Jiangsu HHCK Advanced MaterialsLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiangsu HHCK Advanced MaterialsLtd is not owned by hedge funds. Our data shows that Jianglong Han is the largest shareholder with 14% of shares outstanding. With 13% and 6.7% of the shares outstanding respectively, Lianyungang Deyufeng Investment Partnership Enterprise (Limited Partnership) and Senmao Yang are the second and third largest shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 Jiangsu HHCK Advanced MaterialsLtd

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 most recent data indicates that insiders own a reasonable proportion of Jiangsu HHCK Advanced Materials Co.,Ltd. It has a market capitalization of just CN¥5.7b, and insiders have CN¥1.9b worth of shares in their own names. 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-- including retail investors -- own 35% 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

It seems that Private Companies own 13%, of the Jiangsu HHCK Advanced MaterialsLtd 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.

Public Company Ownership

Public companies currently own 4.0% of Jiangsu HHCK Advanced MaterialsLtd stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Jiangsu HHCK Advanced MaterialsLtd you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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