Key Insights

• Significant control over Qingdao Daneng Environmental Protection Equipment by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 17 shareholders own 51% of the company
• 28% of Qingdao Daneng Environmental Protection Equipment is held by insiders

A look at the shareholders of Qingdao Daneng Environmental Protection Equipment Co., Ltd. (SHSE:688501) can tell us which group is most powerful. With 46% 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).

While insiders who own 28% came under pressure after market cap dropped to CN¥1.3b last week,individual investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Qingdao Daneng Environmental Protection Equipment.

What Does The Institutional Ownership Tell Us About Qingdao Daneng Environmental Protection Equipment?

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 Qingdao Daneng Environmental Protection Equipment. 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. 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 Qingdao Daneng Environmental Protection Equipment, (below). Of course, keep in mind that there are other factors to consider, too.

Qingdao Daneng Environmental Protection Equipment is not owned by hedge funds. Yong Wang is currently the largest shareholder, with 17% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.9% and 5.7%, of the shares outstanding, respectively. Yanhui Liu, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 17 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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 Qingdao Daneng Environmental Protection Equipment

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. 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.

It seems insiders own a significant proportion of Qingdao Daneng Environmental Protection Equipment Co., Ltd.. Insiders have a CN¥371m stake in this CN¥1.3b business. 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 46% stake in Qingdao Daneng Environmental Protection Equipment. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

Public companies currently own 6.9% of Qingdao Daneng Environmental Protection Equipment stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.

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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.