Key Insights

• The considerable ownership by retail investors in Silvery Dragon Prestressed MaterialsLTD Tianjin indicates that they collectively have a greater say in management and business strategy
• A total of 13 investors have a majority stake in the company with 50% ownership
• Insider ownership in Silvery Dragon Prestressed MaterialsLTD Tianjin is 41%

If you want to know who really controls Silvery Dragon Prestressed Materials Co.,LTD Tianjin (SHSE:603969), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 7.1% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 41% stock also took a hit.

In the chart below, we zoom in on the different ownership groups of Silvery Dragon Prestressed MaterialsLTD Tianjin.

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

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 Silvery Dragon Prestressed MaterialsLTD Tianjin does have institutional investors; and they hold a good portion of the company's stock. 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. 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.

Hedge funds don't have many shares in Silvery Dragon Prestressed MaterialsLTD Tianjin. With a 22% stake, CEO Zhifeng Xie is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 9.2% and 6.7%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Tiegen Xie is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. 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 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our information suggests that insiders maintain a significant holding in Silvery Dragon Prestressed Materials Co.,LTD Tianjin. Insiders own CN¥2.0b worth of shares in the CN¥4.8b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 50% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Silvery Dragon Prestressed MaterialsLTD Tianjin. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 is a bit unpleasant!) 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.