Key Insights
- Harbin Electric Corporation Jiamusi Electric MachineLtd's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- 50% of the business is held by the top 11 shareholders
- Institutions own 14% of Harbin Electric Corporation Jiamusi Electric MachineLtd
Every investor in Harbin Electric Corporation Jiamusi Electric Machine CO.,Ltd (SZSE:000922) should be aware of the most powerful shareholder groups. With 46% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And last week, individual investors endured the biggest losses as the stock fell by 5.5%.
Let's delve deeper into each type of owner of Harbin Electric Corporation Jiamusi Electric MachineLtd, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Harbin Electric Corporation Jiamusi Electric MachineLtd?
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 Harbin Electric Corporation Jiamusi Electric MachineLtd. 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 Harbin Electric Corporation Jiamusi Electric MachineLtd's historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in Harbin Electric Corporation Jiamusi Electric MachineLtd. Harbin Electric Corporation is currently the largest shareholder, with 26% of shares outstanding. Jiamusi Electrical Motor Factory Co,. Ltd. is the second largest shareholder owning 11% of common stock, and National Council for Social Security Fund holds about 3.0% of the company stock.
A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
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 Harbin Electric Corporation Jiamusi Electric MachineLtd
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.
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.
We can see that insiders own shares in Harbin Electric Corporation Jiamusi Electric Machine 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¥172m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 46% stake in Harbin Electric Corporation Jiamusi Electric MachineLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
It seems that Private Companies own 38%, of the Harbin Electric Corporation Jiamusi Electric MachineLtd stock. 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:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Harbin Electric Corporation Jiamusi Electric MachineLtd that you should be aware of before investing here.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com