Key Insights

• The considerable ownership by retail investors in Snowsky Salt Industry GroupLTD indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 16 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Snowsky Salt Industry Group CO.,LTD (SHSE:600929) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 49% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, retail investors were the biggest beneficiaries of last week's 3.8% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Snowsky Salt Industry GroupLTD.

What Does The Institutional Ownership Tell Us About Snowsky Salt Industry GroupLTD?

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 Snowsky Salt Industry GroupLTD. 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 Snowsky Salt Industry GroupLTD'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 Snowsky Salt Industry GroupLTD. Hunan Province Light Industry & Salt Industry Group Co.,Ltd. is currently the largest shareholder, with 33% of shares outstanding. With 5.8% and 1.6% of the shares outstanding respectively, Hunan Light Salt Shengfu Venture Capital Management Co., Ltd. and Hunan Light Salt Venture Capital Management Co., Ltd. are the second and third largest shareholders.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 16 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Snowsky Salt Industry GroupLTD

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.

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 most recent data indicates that insiders own some shares in Snowsky Salt Industry Group CO.,LTD. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around CN¥150m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 49% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Snowsky Salt Industry GroupLTD. 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.

Private Equity Ownership

With a stake of 5.8%, private equity firms could influence the Snowsky Salt Industry GroupLTD board. 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

We can see that Private Companies own 36%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Snowsky Salt Industry GroupLTD better, we need to consider many other factors. For example, we've discovered 2 warning signs for Snowsky Salt Industry GroupLTD that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.