Key Insights

• Silvery Dragon Prestressed MaterialsLTD Tianjin's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 49% of the business is held by the top 23 shareholders
• 40% of Silvery Dragon Prestressed MaterialsLTD Tianjin is held by insiders

A look at the shareholders of Silvery Dragon Prestressed Materials Co.,LTD Tianjin (SHSE:603969) can tell us which group is most powerful. The group holding the most number of shares in the company, around 51% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Retail investors gained the most after market cap touched CN¥4.7b last week, while insiders who own 40% also benefitted.

Let's delve deeper into each type of owner of Silvery Dragon Prestressed MaterialsLTD Tianjin, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Silvery Dragon Prestressed MaterialsLTD Tianjin?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Silvery Dragon Prestressed MaterialsLTD Tianjin. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Silvery Dragon Prestressed MaterialsLTD Tianjin's historic earnings and revenue below, but keep in mind there's always more to the story.

Silvery Dragon Prestressed MaterialsLTD Tianjin is not owned by hedge funds. The company's CEO Zhifeng Xie is the largest shareholder with 22% of shares outstanding. For context, the second largest shareholder holds about 9.2% of the shares outstanding, followed by an ownership of 6.7% by the third-largest shareholder. Interestingly, the second-largest shareholder, Tiegen Xie is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

On studying our ownership data, we found that 23 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Silvery Dragon Prestressed MaterialsLTD Tianjin

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.

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.

Our information suggests that insiders maintain a significant holding in Silvery Dragon Prestressed Materials Co.,LTD Tianjin. Insiders own CN¥1.9b worth of shares in the CN¥4.7b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 51% stake in Silvery Dragon Prestressed MaterialsLTD Tianjin, suggesting it is a fairly popular stock. 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 Silvery Dragon Prestressed MaterialsLTD Tianjin better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Silvery Dragon Prestressed MaterialsLTD Tianjin (of which 1 makes us a bit uncomfortable!) you should know about.

Of course this may not be the best stock to buy. So take a peek at this free 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.

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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.