Key Insights

• Significant control over Fujian Tianma Science and Technology Group by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 25 investors have a majority stake in the company with 42% ownership
• 25% of Fujian Tianma Science and Technology Group is held by insiders

A look at the shareholders of Fujian Tianma Science and Technology Group Co., Ltd (SHSE:603668) can tell us which group is most powerful. With 58% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 7.2% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 25% stock also took a hit.

Let's delve deeper into each type of owner of Fujian Tianma Science and Technology Group, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Fujian Tianma Science and Technology Group?

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.

We can see that Fujian Tianma Science and Technology Group does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Fujian Tianma Science and Technology Group's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Fujian Tianma Science and Technology Group. Looking at our data, we can see that the largest shareholder is the CEO Qing Tang Chen with 19% of shares outstanding. The second and third largest shareholders are Fujian Tianma Science And Technology Group Co., Ltd., ESOP and Hainan Beiheng Private Equity Fund Management Center (Limited Partnership), with an equal amount of shares to their name at 4.5%.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Fujian Tianma Science and Technology Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 Fujian Tianma Science and Technology Group Co., Ltd. It has a market capitalization of just CN¥5.9b, and insiders have CN¥1.5b worth of shares in their own names. 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 -- including retail investors -- own 58% of Fujian Tianma Science and Technology Group. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Fujian Tianma Science and Technology Group better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Fujian Tianma Science and Technology Group you should be aware of, and 3 of them shouldn't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.