Private companies account for 52% of Hengdian Group DMEGC Magnetics Co. ,Ltd's (SZSE:002056) ownership, while individual investors account for 30%

Key Insights

• Significant control over Hengdian Group DMEGC Magnetics Ltd by private companies implies that the general public has more power to influence management and governance-related decisions
• Hengdian Association of economic enterprises owns 51% of the company
• 14% of Hengdian Group DMEGC Magnetics Ltd is held by Institutions

If you want to know who really controls Hengdian Group DMEGC Magnetics Co. ,Ltd (SZSE:002056), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 52% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors, on the other hand, account for 30% of the company's stockholders.

Let's take a closer look to see what the different types of shareholders can tell us about Hengdian Group DMEGC Magnetics Ltd.

See our latest analysis for Hengdian Group DMEGC Magnetics Ltd

What Does The Institutional Ownership Tell Us About Hengdian Group DMEGC Magnetics Ltd?

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.

Hengdian Group DMEGC Magnetics Ltd 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 Hengdian Group DMEGC Magnetics Ltd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Hengdian Group DMEGC Magnetics Ltd. Our data shows that Hengdian Association of economic enterprises is the largest shareholder with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 4.0% and 2.1% of the stock.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Hengdian Group DMEGC Magnetics Ltd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Shareholders would probably be interested to learn that insiders own shares in Hengdian Group DMEGC Magnetics Co. ,Ltd. This is a big company, so it is good to see this level of alignment. Insiders own CN¥577m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 30% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 52%, 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 Hengdian Group DMEGC Magnetics Ltd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Hengdian Group DMEGC Magnetics Ltd , and understanding them should be part of your investment process.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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