Key Insights

• Insiders appear to have a vested interest in Guangzhou Tinci Materials Technology's growth, as seen by their sizeable ownership
• A total of 12 investors have a majority stake in the company with 51% ownership
• Institutions own 18% of Guangzhou Tinci Materials Technology

Every investor in Guangzhou Tinci Materials Technology Co., Ltd. (SZSE:002709) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 42% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, insiders endured the biggest losses as the stock fell by 6.4%.

Let's take a closer look to see what the different types of shareholders can tell us about Guangzhou Tinci Materials Technology.

What Does The Institutional Ownership Tell Us About Guangzhou Tinci Materials 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.

Guangzhou Tinci Materials Technology 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 Guangzhou Tinci Materials Technology's earnings history below. Of course, the future is what really matters.

Guangzhou Tinci Materials Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Jinfu Xu with 37% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 1.8% and 1.7%, of the shares outstanding, respectively.

A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Guangzhou Tinci Materials Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 most recent data indicates that insiders own a reasonable proportion of Guangzhou Tinci Materials Technology Co., Ltd.. Insiders own CN¥16b worth of shares in the CN¥38b company. That's quite meaningful. 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

With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Guangzhou Tinci Materials Technology. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Guangzhou Tinci Materials Technology better, we need to consider many other factors. Take risks for example - Guangzhou Tinci Materials Technology has 3 warning signs (and 1 which doesn't sit too well with us) we think 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.