Key Insights
To get a sense of who is truly in control of Zhongman Petroleum and Natural Gas Group Corp.,Ltd. (SHSE:603619), it is important to understand the ownership structure of the business. We can see that retail investors own the lion’s share in the company with 33% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, retail investors collectively scored the highest last week as the company hit CN¥8.6b market cap following a 4.9% gain in the stock.
Let’s delve deeper into each type of owner of Zhongman Petroleum and Natural Gas GroupLtd, beginning with the chart below.
View our latest analysis for Zhongman Petroleum and Natural Gas GroupLtd
What Does The Institutional Ownership Tell Us About Zhongman Petroleum and Natural Gas 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 Zhongman Petroleum and Natural Gas 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. 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 Zhongman Petroleum and Natural Gas GroupLtd’s earnings history below. Of course, the future is what really matters.
Zhongman Petroleum and Natural Gas GroupLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Shanghai Zhongman Investment Holding Co., Ltd. with 22% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.7% and 4.2% of the stock.
We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Zhongman Petroleum and Natural Gas GroupLtd
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
It seems insiders own a significant proportion of Zhongman Petroleum and Natural Gas Group Corp.,Ltd.. Insiders own CN¥1.3b worth of shares in the CN¥8.6b 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
The general public– including retail investors — own 33% stake in the company, and hence can’t easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
It seems that Private Companies own 33%, of the Zhongman Petroleum and Natural Gas GroupLtd stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
It’s always worth thinking about the different groups who own shares in a company. But to understand Zhongman Petroleum and Natural Gas GroupLtd better, we need to consider many other factors. Case in point: We’ve spotted 2 warning signs for Zhongman Petroleum and Natural Gas GroupLtd you should be aware of, and 1 of them doesn’t sit too well with us.
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…
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