Key Insights

• The considerable ownership by retail investors in HMT (Xiamen) New Technical Materials indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 44% of the company
• 11% of HMT (Xiamen) New Technical Materials is held by Institutions

If you want to know who really controls HMT (Xiamen) New Technical Materials Co., Ltd (SHSE:603306), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, retail investors as a group endured the highest losses last week after market cap fell by CN¥564m.

Let's take a closer look to see what the different types of shareholders can tell us about HMT (Xiamen) New Technical Materials.

What Does The Institutional Ownership Tell Us About HMT (Xiamen) New Technical Materials?

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.

As you can see, institutional investors have a fair amount of stake in HMT (Xiamen) New Technical Materials. 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 HMT (Xiamen) New Technical Materials' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in HMT (Xiamen) New Technical Materials. Dongyang Huasheng Enterprise Management Partnership (Limited Partnership) is currently the largest shareholder, with 15% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.7% and 4.9% of the stock. Chu Quan Zhang, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of HMT (Xiamen) New Technical Materials

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can report that insiders do own shares in HMT (Xiamen) New Technical Materials Co., Ltd. It has a market capitalization of just CN¥6.6b, and insiders have CN¥546m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of HMT (Xiamen) New Technical Materials shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

We can see that Private Companies own 25%, of the shares on issue. 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for HMT (Xiamen) New Technical Materials that you should be aware of before investing here.

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.