Key Insights

• The considerable ownership by private companies in Ningbo Boway Alloy Material indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 5 shareholders
• 12% of Ningbo Boway Alloy Material is held by Institutions

A look at the shareholders of Ningbo Boway Alloy Material Company Limited (SHSE:601137) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 46% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies were the biggest beneficiaries of last week's 21% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Ningbo Boway Alloy Material.

What Does The Institutional Ownership Tell Us About Ningbo Boway Alloy Material?

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.

As you can see, institutional investors have a fair amount of stake in Ningbo Boway Alloy Material. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Ningbo Boway Alloy Material's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Ningbo Boway Alloy Material. The company's largest shareholder is Boway Group, with ownership of 32%. In comparison, the second and third largest shareholders hold about 10% and 3.6% of the stock.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Ningbo Boway Alloy Material

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.

We can see that insiders own shares in Ningbo Boway Alloy Material Company Limited. This is a big company, so it is good to see this level of alignment. Insiders own CN¥437m 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 37% stake in Ningbo Boway Alloy Material. 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 Company Ownership

It seems that Private Companies own 46%, of the Ningbo Boway Alloy Material stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Ningbo Boway Alloy Material better, we need to consider many other factors. Be aware that Ningbo Boway Alloy Material is showing 3 warning signs in our investment analysis , and 2 of those make us uncomfortable...

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.