Key Insights

• Significant control over Anhui Guangxin Agrochemical by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 7 shareholders own 50% of the company
• Institutional ownership in Anhui Guangxin Agrochemical is 13%

Every investor in Anhui Guangxin Agrochemical Co., Ltd. (SHSE:603599) should be aware of the most powerful shareholder groups. We can see that individual investors 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, individual investors were the biggest beneficiaries of last week's 4.1% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Anhui Guangxin Agrochemical.

What Does The Institutional Ownership Tell Us About Anhui Guangxin Agrochemical?

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 Anhui Guangxin Agrochemical. 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 Anhui Guangxin Agrochemical, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Anhui Guangxin Agrochemical. Anhui Guangxin Group Co., Ltd. is currently the company's largest shareholder with 39% of shares outstanding. Invesco Great Wall Fund Management Co. Ltd is the second largest shareholder owning 4.2% of common stock, and Jin Xiang Huang holds about 3.1% of the company stock. Jin Xiang Huang, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Anhui Guangxin Agrochemical

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. 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.

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.

Shareholders would probably be interested to learn that insiders own shares in Anhui Guangxin Agrochemical Co., Ltd.. The insiders have a meaningful stake worth CN¥346m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 46% 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.

Private Company Ownership

It seems that Private Companies own 39%, of the Anhui Guangxin Agrochemical stock. 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 Anhui Guangxin Agrochemical better, we need to consider many other factors. For instance, we've identified 3 warning signs for Anhui Guangxin Agrochemical (1 makes us a bit uncomfortable) that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.