Retail investors invested in Guangdong TianYiMa Information Industry Co.,Ltd. (SZSE:301178) up 14% last week, insiders too were rewarded

Key Insights

• The considerable ownership by retail investors in Guangdong TianYiMa Information IndustryLtd indicates that they collectively have a greater say in management and business strategy
• The top 18 shareholders own 49% of the company
• Insiders own 35% of Guangdong TianYiMa Information IndustryLtd

If you want to know who really controls Guangdong TianYiMa Information Industry Co.,Ltd. (SZSE:301178), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Retail investors gained the most after market cap touched CN¥1.4b last week, while insiders who own 35% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about Guangdong TianYiMa Information IndustryLtd.

Check out our latest analysis for Guangdong TianYiMa Information IndustryLtd

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

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Guangdong TianYiMa Information IndustryLtd. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Guangdong TianYiMa Information IndustryLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Guangdong TianYiMa Information IndustryLtd is not owned by hedge funds. Mingling Lin is currently the 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.

Our studies suggest that the top 18 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Guangdong TianYiMa Information IndustryLtd

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.

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¥1.4b, and insiders have CN¥494m 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, mostly comprising of individual investors, collectively holds 51% of Guangdong TianYiMa Information IndustryLtd shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

We can see that Private Companies own 6.8%, of the shares on issue. 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.

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. Case in point: We've spotted 4 warning signs for Guangdong TianYiMa Information IndustryLtd you should be aware of, and 3 of them shouldn't be ignored.

Of course this may not be the best stock to buy. So take a peek at this free 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