Key Insights
A look at the shareholders of Shanxi Coal International Energy Group Co.,Ltd (SHSE:600546) can tell us which group is most powerful. We can see that private companies own the lion’s share in the company with 58% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As market cap fell to CN¥35b last week, private companies would have faced the highest losses than any other shareholder groups of the company.
Let’s take a closer look to see what the different types of shareholders can tell us about Shanxi Coal International Energy GroupLtd.
View our latest analysis for Shanxi Coal International Energy GroupLtd
What Does The Institutional Ownership Tell Us About Shanxi Coal International Energy GroupLtd?
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 Shanxi Coal International Energy GroupLtd 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. 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 Shanxi Coal International Energy GroupLtd, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don’t have many shares in Shanxi Coal International Energy GroupLtd. Shanxi Coal Import & Export Group Co., Ltd. is currently the largest shareholder, with 58% of shares outstanding. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 2.1% and 1.8% of the stock.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Shanxi Coal International Energy GroupLtd
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.
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 data suggests that insiders own under 1% of Shanxi Coal International Energy Group Co.,Ltd in their own names. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Keep in mind that it’s a big company, and the insiders own CN¥376k worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public– including retail investors — own 28% 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
Our data indicates that Private Companies hold 58%, of the company’s shares. 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 Shanxi Coal International Energy GroupLtd better, we need to consider many other factors. Take risks for example – Shanxi Coal International Energy GroupLtd has 1 warning sign we think you should be aware of.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the…
Read More: Shanxi Coal International Energy Group Co.,Ltd’s (SHSE:600546) stock price