Key Insights

• Jiangsu Dingsheng New Materials Ltd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 3 investors have a majority stake in the company with 50% ownership
• Insiders own 11% of Jiangsu Dingsheng New Materials Ltd

Every investor in Jiangsu Dingsheng New Materials Joint-Stock Co.,Ltd (SHSE:603876) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private companies with 29% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies as a group endured the highest losses last week after market cap fell by CN¥667m.

Let's delve deeper into each type of owner of Jiangsu Dingsheng New Materials Ltd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Jiangsu Dingsheng New Materials Ltd?

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.

Jiangsu Dingsheng New Materials Ltd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Jiangsu Dingsheng New Materials Ltd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Jiangsu Dingsheng New Materials Ltd. Hangzhou Dingsheng Industrial Group Co.,Ltd. is currently the largest shareholder, with 28% of shares outstanding. The second and third largest shareholders are Gongqingcheng Purun Investment Management Partnership Enterprise (Limited Partnership) and Xianhai Zhou, with an equal amount of shares to their name at 11%.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 50% stake.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Jiangsu Dingsheng New Materials Ltd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Dingsheng New Materials Joint-Stock Co.,Ltd. It is very interesting to see that insiders have a meaningful CN¥916m stake in this CN¥8.0b business. 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 28% stake in Jiangsu Dingsheng New Materials Ltd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 11% stake in Jiangsu Dingsheng New Materials Ltd. This suggests they can be influential in key policy decisions. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

It seems that Private Companies own 29%, of the Jiangsu Dingsheng New Materials Ltd stock. 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 Jiangsu Dingsheng New Materials Ltd better, we need to consider many other factors. Be aware that Jiangsu Dingsheng New Materials Ltd is showing 1 warning sign in our investment analysis , you should know about...

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.

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.