Retail investors among Jiangxi Bestoo Energy Co.,Ltd.'s (SZSE:001376) largest stockholders and were hit after last week's 5.3% price drop

Key Insights

• The considerable ownership by retail investors in Jiangxi Bestoo EnergyLtd indicates that they collectively have a greater say in management and business strategy
• The top 5 shareholders own 53% of the company
• Insider ownership in Jiangxi Bestoo EnergyLtd is 25%

If you want to know who really controls Jiangxi Bestoo Energy Co.,Ltd. (SZSE:001376), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 36% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, retail investors endured the biggest losses as the stock fell by 5.3%.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangxi Bestoo EnergyLtd.

Check out our latest analysis for Jiangxi Bestoo EnergyLtd

What Does The Institutional Ownership Tell Us About Jiangxi Bestoo EnergyLtd?

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.

Jiangxi Bestoo EnergyLtd 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. 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 Jiangxi Bestoo EnergyLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Jiangxi Bestoo EnergyLtd is not owned by hedge funds. The company's largest shareholder is Nanchang Bestoo Environmental Protection Technology Co., Ltd., with ownership of 20%. In comparison, the second and third largest shareholders hold about 12% and 10% of the stock. Chunlong Zhang, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

Our research also brought to light the fact that roughly 53% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Jiangxi Bestoo EnergyLtd

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 Jiangxi Bestoo Energy Co.,Ltd.. Insiders have a CN¥1.7b stake in this CN¥6.6b business. 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, who are usually individual investors, hold a 36% stake in Jiangxi Bestoo EnergyLtd. 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

We can see that Private Companies own 30%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.