Key Insights

• The considerable ownership by private companies in TianJin 712 Communication & Broadcasting indicates that they collectively have a greater say in management and business strategy
• 53% of the business is held by the top 2 shareholders
• 14% of TianJin 712 Communication & Broadcasting is held by Institutions

To get a sense of who is truly in control of TianJin 712 Communication & Broadcasting Co., Ltd. (SHSE:603712), it is important to understand the ownership structure of the business. With 48% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And individual investors on the other hand have a 30% ownership in the company.

Let's delve deeper into each type of owner of TianJin 712 Communication & Broadcasting, beginning with the chart below.

View our latest analysis for TianJin 712 Communication & Broadcasting

What Does The Institutional Ownership Tell Us About TianJin 712 Communication & Broadcasting?

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.

We can see that TianJin 712 Communication & Broadcasting 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. 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 TianJin 712 Communication & Broadcasting's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in TianJin 712 Communication & Broadcasting. The company's largest shareholder is Tianjin Jinzhi State-owned Capital Investment Management Co., Ltd., with ownership of 48%. Meanwhile, the second and third largest shareholders, hold 5.0% and 2.1%, of the shares outstanding, respectively.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 53% stake.

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 TianJin 712 Communication & Broadcasting

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.

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.

We can see that insiders own shares in TianJin 712 Communication & Broadcasting Co., Ltd.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around CN¥631m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over TianJin 712 Communication & Broadcasting. 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 48%, of the TianJin 712 Communication & Broadcasting stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

Public companies currently own 5.0% of TianJin 712 Communication & Broadcasting stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for TianJin 712 Communication & Broadcasting you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.