Risen Energy Co.,Ltd.'s (SZSE:300118) last week's 4.3% decline must have disappointed individual investors who have a significant stake

Key Insights

• Significant control over Risen EnergyLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 22 shareholders own 50% of the company
• Insider ownership in Risen EnergyLtd is 25%

If you want to know who really controls Risen Energy Co.,Ltd. (SZSE:300118), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 48% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While the holdings of individual investors took a hit after last week’s 4.3% price drop, insiders with their 25% also suffered.

Let's delve deeper into each type of owner of Risen EnergyLtd, beginning with the chart below.

View our latest analysis for Risen EnergyLtd

What Does The Institutional Ownership Tell Us About Risen EnergyLtd?

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.

As you can see, institutional investors have a fair amount of stake in Risen EnergyLtd. 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. 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 Risen EnergyLtd's earnings history below. Of course, the future is what really matters.

Risen EnergyLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Haifeng Lin with 25% of shares outstanding. Guanghua Sunshine Asset Management Co., Ltd. is the second largest shareholder owning 4.4% of common stock, and First Seafront Fund Management Co., Ltd holds about 4.1% of the company stock.

A closer look at our ownership figures suggests that the top 22 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Risen EnergyLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

It seems insiders own a significant proportion of Risen Energy Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥3.5b stake in this CN¥14b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 48% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Risen EnergyLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. For example, we've discovered 5 warning signs for Risen EnergyLtd (2 make us uncomfortable!) that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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