Guangdong TianYiMa Information Industry Co.,Ltd. (SZSE:301178) surges 13%; retail investors who own 54% shares profited along with insiders

Key Insights

• Significant control over Guangdong TianYiMa Information IndustryLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 16 investors have a majority stake in the company with 46% ownership
• 36% of Guangdong TianYiMa Information IndustryLtd is held by insiders

Every investor in Guangdong TianYiMa Information Industry Co.,Ltd. (SZSE:301178) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 54% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While retail investors were the group that benefitted the most from last week’s CN¥236m market cap gain, insiders too had a 36% share in those profits.

Let's delve deeper into each type of owner of Guangdong TianYiMa Information IndustryLtd, beginning with the chart below.

View our latest analysis for Guangdong TianYiMa Information IndustryLtd

What Does The Institutional Ownership Tell Us About Guangdong TianYiMa Information IndustryLtd?

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.

Less than 5% of Guangdong TianYiMa Information IndustryLtd is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

We note that hedge funds don't have a meaningful investment in Guangdong TianYiMa Information IndustryLtd. Mingling Lin is currently the company's largest shareholder with 29% of shares outstanding. With 6.4% and 4.3% of the shares outstanding respectively, Xuepei Ma and Nanjing Youzhi Investment Management Partnership Enterprise (Limited Partnership) are the second and third largest shareholders. Xuepei Ma, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On studying our ownership data, we found that 16 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Guangdong TianYiMa Information IndustryLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

It seems insiders own a significant proportion of Guangdong TianYiMa Information Industry Co.,Ltd.. It has a market capitalization of just CN¥2.0b, and insiders have CN¥731m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 54% stake in Guangdong TianYiMa Information IndustryLtd, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

Our data indicates that Private Companies hold 5.9%, of the company's shares. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Guangdong TianYiMa Information IndustryLtd better, we need to consider many other factors. For instance, we've identified 2 warning signs for Guangdong TianYiMa Information IndustryLtd (1 is a bit unpleasant) that you should be aware of.

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.