Key Insights

• The considerable ownership by retail investors in Suzhou Shijing Environmental TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• A total of 19 investors have a majority stake in the company with 51% ownership
• Insider ownership in Suzhou Shijing Environmental TechnologyLtd is 22%

A look at the shareholders of Suzhou Shijing Environmental Technology Co.,Ltd. (SZSE:301030) can tell us which group is most powerful. With 45% stake, retail 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 institutions who own 22% came under pressure after market cap dropped to CN¥6.1b last week,retail investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Suzhou Shijing Environmental TechnologyLtd.

What Does The Institutional Ownership Tell Us About Suzhou Shijing Environmental TechnologyLtd?

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.

We can see that Suzhou Shijing Environmental TechnologyLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Suzhou Shijing Environmental TechnologyLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Suzhou Shijing Environmental TechnologyLtd. With a 16% stake, CEO Ye Zhu is the largest shareholder. For context, the second largest shareholder holds about 9.8% of the shares outstanding, followed by an ownership of 4.3% by the third-largest shareholder. Interestingly, the third-largest shareholder, Xiaohong Ye is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

A closer look at our ownership figures suggests that the top 19 shareholders have a combined ownership of 51% 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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Suzhou Shijing Environmental TechnologyLtd

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in Suzhou Shijing Environmental Technology Co.,Ltd.. Insiders have a CN¥1.3b stake in this CN¥6.1b 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 45% stake in Suzhou Shijing Environmental TechnologyLtd. 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.

Private Equity Ownership

With a stake of 9.8%, private equity firms could influence the Suzhou Shijing Environmental TechnologyLtd 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with Suzhou Shijing Environmental TechnologyLtd (including 2 which shouldn't be ignored) .

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.

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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.