Key Insights

• The considerable ownership by public companies in XTC New Energy Materials(Xiamen)Ltd indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Xiamen Tungsten Co.,Ltd. with a 50% stake
• Institutional ownership in XTC New Energy Materials(Xiamen)Ltd is 10%

Every investor in XTC New Energy Materials(Xiamen) Co.,Ltd. (SHSE:688778) should be aware of the most powerful shareholder groups. With 56% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies were the biggest beneficiaries of last week's 6.6% gain.

In the chart below, we zoom in on the different ownership groups of XTC New Energy Materials(Xiamen)Ltd.

What Does The Institutional Ownership Tell Us About XTC New Energy Materials(Xiamen)Ltd?

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.

XTC New Energy Materials(Xiamen)Ltd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 XTC New Energy Materials(Xiamen)Ltd's earnings history below. Of course, the future is what really matters.

XTC New Energy Materials(Xiamen)Ltd is not owned by hedge funds. The company's largest shareholder is Xiamen Tungsten Co.,Ltd., with ownership of 50%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Fujian Yekong Equity Investment Management Co., Ltd. is the second largest shareholder owning 8.0% of common stock, and Ningbo Haicheng Lingzun Venture Capital Partnership Enterprise (Limited Partnership) holds about 7.3% of the company stock.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of XTC New Energy Materials(Xiamen)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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public-- including retail investors -- own 17% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

Private equity firms hold a 8.0% stake in XTC New Energy Materials(Xiamen)Ltd. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

We can see that Private Companies own 8.4%, of the shares on issue. 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.

Public Company Ownership

Public companies currently own 56% of XTC New Energy Materials(Xiamen)Ltd stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with XTC New Energy Materials(Xiamen)Ltd , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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