Key Insights
- Jiangsu ToLand AlloyLtd's significant insider ownership suggests inherent interests in company's expansion
- A total of 4 investors have a majority stake in the company with 51% ownership
- 24% of Jiangsu ToLand AlloyLtd is held by Institutions
If you want to know who really controls Jiangsu ToLand Alloy Co.,Ltd (SZSE:300855), then you'll have to look at the makeup of its share registry. With 49% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, insiders as a group endured the highest losses after market cap fell by CN¥459m.
Let's delve deeper into each type of owner of Jiangsu ToLand AlloyLtd, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Jiangsu ToLand AlloyLtd?
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.
We can see that Jiangsu ToLand AlloyLtd 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. 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 Jiangsu ToLand AlloyLtd'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 Jiangsu ToLand AlloyLtd. With a 35% stake, CEO Baifang Wan is the largest shareholder. Jianping Chen is the second largest shareholder owning 6.7% of common stock, and Harvest Fund Management Co. Ltd. holds about 4.6% of the company stock.
On looking further, we found that 51% of the shares are owned by the top 4 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Jiangsu ToLand AlloyLtd
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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 Jiangsu ToLand Alloy Co.,Ltd. Insiders own CN¥4.9b worth of shares in the CN¥9.9b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public-- including retail investors -- own 24% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu ToLand AlloyLtd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Jiangsu ToLand AlloyLtd , and understanding them should be part of your investment process.
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.