Key Insights

• Qingdao Sentury Tire's significant insider ownership suggests inherent interests in company's expansion
• 50% of the business is held by the top 7 shareholders
• Institutions own 18% of Qingdao Sentury Tire

A look at the shareholders of Qingdao Sentury Tire Co., Ltd. (SZSE:002984) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So, insiders of Qingdao Sentury Tire have a lot at stake and every decision they make on the company's future is important to them from a financial point of view.

In the chart below, we zoom in on the different ownership groups of Qingdao Sentury Tire.

What Does The Institutional Ownership Tell Us About Qingdao Sentury Tire?

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.

Qingdao Sentury Tire 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Qingdao Sentury Tire, (below). Of course, keep in mind that there are other factors to consider, too.

Qingdao Sentury Tire is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Long Qin with 37% of shares outstanding. With 4.3% and 2.0% of the shares outstanding respectively, Wenlong Lin and Zhong Ou Fund Management Co., Ltd are the second and third largest shareholders. Wenlong Lin, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

We did some more digging and found that 7 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Qingdao Sentury Tire

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Qingdao Sentury Tire Co., Ltd.. It has a market capitalization of just CN¥26b, and insiders have CN¥11b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in Qingdao Sentury Tire. 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

We can see that Private Companies own 7.4%, of the shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Qingdao Sentury Tire better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Qingdao Sentury Tire (of which 1 is a bit unpleasant!) you should know about.

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.