Key Insights

• Significant insider control over Jiangsu Xinquan Automotive TrimLtd implies vested interests in company growth
• The top 6 shareholders own 50% of the company
• Institutions own 23% of Jiangsu Xinquan Automotive TrimLtd

If you want to know who really controls Jiangsu Xinquan Automotive Trim Co.,Ltd. (SHSE:603179), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 39% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, insiders endured the biggest losses as the stock fell by 6.9%.

In the chart below, we zoom in on the different ownership groups of Jiangsu Xinquan Automotive TrimLtd.

What Does The Institutional Ownership Tell Us About Jiangsu Xinquan Automotive TrimLtd?

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.

Jiangsu Xinquan Automotive TrimLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Jiangsu Xinquan Automotive TrimLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Jiangsu Xinquan Automotive TrimLtd. Looking at our data, we can see that the largest shareholder is the CEO Zhi Tang with 39% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 2.7% and 2.6%, of the shares outstanding, respectively.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Jiangsu Xinquan Automotive TrimLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Jiangsu Xinquan Automotive Trim Co.,Ltd.. Insiders own CN¥9.6b worth of shares in the CN¥24b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 35% stake in Jiangsu Xinquan Automotive TrimLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu Xinquan Automotive TrimLtd better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Jiangsu Xinquan Automotive TrimLtd (including 1 which makes us a bit uncomfortable) .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.