Key Insights

• Shandong Hontron Aluminum Industry Holding's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 44% of the business is held by the top 20 shareholders
• Institutions own 14% of Shandong Hontron Aluminum Industry Holding

If you want to know who really controls Shandong Hontron Aluminum Industry Holding Company Limited (SZSE:002379), 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 retail investors with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 9.6% decline in share price, retail investors suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Shandong Hontron Aluminum Industry Holding.

What Does The Institutional Ownership Tell Us About Shandong Hontron Aluminum Industry Holding?

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 Shandong Hontron Aluminum Industry Holding does have institutional investors; and they hold a good portion of the company's stock. 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 Shandong Hontron Aluminum Industry Holding's earnings history below. Of course, the future is what really matters.

Shandong Hontron Aluminum Industry Holding is not owned by hedge funds. Our data shows that Shiping Prosperity Private Trust Company is the largest shareholder with 23% of shares outstanding. Everbright Asset Management Co., Ltd. is the second largest shareholder owning 2.8% of common stock, and Guangzhou Xinyihe Asset Management Co., Ltd. holds about 2.5% of the company stock.

Our studies suggest that the top 20 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. 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 Shandong Hontron Aluminum Industry Holding

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.

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.

Shareholders would probably be interested to learn that insiders own shares in Shandong Hontron Aluminum Industry Holding Company Limited. In their own names, insiders own CN¥142m worth of stock in the CN¥6.5b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 57% of Shandong Hontron Aluminum Industry Holding shares. 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.

Private Company Ownership

Our data indicates that Private Companies hold 24%, 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 Shandong Hontron Aluminum Industry Holding better, we need to consider many other factors. Take risks for example - Shandong Hontron Aluminum Industry Holding has 2 warning signs (and 1 which is potentially serious) we think you should know about.

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.