Key Insights

• The considerable ownership by retail investors in Nantong Jiangshan Agrochemical & ChemicalsLtd indicates that they collectively have a greater say in management and business strategy
• The top 13 shareholders own 50% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. (SHSE:600389) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to CN¥7.1b last week, retail investors would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of Nantong Jiangshan Agrochemical & ChemicalsLtd.

What Does The Institutional Ownership Tell Us About Nantong Jiangshan Agrochemical & ChemicalsLtd?

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.

As you can see, institutional investors have a fair amount of stake in Nantong Jiangshan Agrochemical & ChemicalsLtd. 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. 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 Nantong Jiangshan Agrochemical & ChemicalsLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Nantong Jiangshan Agrochemical & ChemicalsLtd. The company's largest shareholder is Nantong Industries Holding Group Co.Ltd., with ownership of 29%. Sichuan Fuhua Agricultural Investment Group is the second largest shareholder owning 6.1% of common stock, and Leshan Wutongqiao District Development Industrial Investment Co., Ltd. holds about 5.1% of the company stock.

A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Nantong Jiangshan Agrochemical & ChemicalsLtd

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.

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.

We can report that insiders do own shares in Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd.. It has a market capitalization of just CN¥7.1b, and insiders have CN¥239m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 46% stake in Nantong Jiangshan Agrochemical & ChemicalsLtd. 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 40%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Nantong Jiangshan Agrochemical & ChemicalsLtd , 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.