Key Insights

• The considerable ownership by retail investors in LIAONING ENERGY INDUSTRYLTD indicates that they collectively have a greater say in management and business strategy
• The top 5 shareholders own 54% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls LIAONING ENERGY INDUSTRY Co.,LTD (SHSE:600758), then you'll have to look at the makeup of its share registry. With 44% 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).

As a result, retail investors collectively scored the highest last week as the company hit CN¥4.6b market cap following a 9.5% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about LIAONING ENERGY INDUSTRYLTD.

What Does The Institutional Ownership Tell Us About LIAONING ENERGY INDUSTRYLTD?

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.

LIAONING ENERGY INDUSTRYLTD already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 LIAONING ENERGY INDUSTRYLTD's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in LIAONING ENERGY INDUSTRYLTD. Liaoning Energy Industry Holding Group Co., Ltd is currently the company's largest shareholder with 24% of shares outstanding. With 9.6% and 7.8% of the shares outstanding respectively, Shenzhen Xianglong Investment Partnership Enterprise (Limited Partnership) and China Cinda Asset Management Co., Ltd., Asset Management Arm are the second and third largest shareholders.

On looking further, we found that 54% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of LIAONING ENERGY INDUSTRYLTD

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 data suggests that insiders own under 1% of LIAONING ENERGY INDUSTRY Co.,LTD in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It has a market capitalization of just CN¥4.6b, and the board has only CN¥17k worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 44% stake in LIAONING ENERGY INDUSTRYLTD. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 7.4%, private equity firms could influence the LIAONING ENERGY INDUSTRYLTD board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

It seems that Private Companies own 39%, of the LIAONING ENERGY INDUSTRYLTD 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 LIAONING ENERGY INDUSTRYLTD better, we need to consider many other factors. Be aware that LIAONING ENERGY INDUSTRYLTD is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.