Key Insights

• Tianyang New Materials (Shanghai) Technology's significant insider ownership suggests inherent interests in company's expansion
• The top 5 shareholders own 50% of the company
• Institutional ownership in Tianyang New Materials (Shanghai) Technology is 20%

To get a sense of who is truly in control of Tianyang New Materials (Shanghai) Technology Co., Ltd. (SHSE:603330), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 43% ownership. 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, insiders scored the highest last week as the company hit CN¥2.7b market cap following a 25% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Tianyang New Materials (Shanghai) Technology.

What Does The Institutional Ownership Tell Us About Tianyang New Materials (Shanghai) Technology?

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.

Tianyang New Materials (Shanghai) Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Tianyang New Materials (Shanghai) Technology'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 Tianyang New Materials (Shanghai) Technology. With a 31% stake, CEO Zhe Long Li is the largest shareholder. For context, the second largest shareholder holds about 9.9% of the shares outstanding, followed by an ownership of 4.3% by the third-largest shareholder.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Tianyang New Materials (Shanghai) Technology

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 information suggests that insiders maintain a significant holding in Tianyang New Materials (Shanghai) Technology Co., Ltd.. Insiders own CN¥1.1b worth of shares in the CN¥2.7b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Tianyang New Materials (Shanghai) Technology. 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.

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 instance, we've identified 2 warning signs for Tianyang New Materials (Shanghai) Technology that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.