Individual investors among Tonze New Energy Technology Co.,Ltd.’s (SZSE:002759) largest stockholders and were hit after last week’s 8.5% price drop

Key Insights

• Tonze New Energy TechnologyLtd’s significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 25 shareholders own 42% of the company
• Using data from company’s past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Tonze New Energy Technology Co.,Ltd. (SZSE:002759), it is important to understand the ownership structure of the business. We can see that individual investors 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.

And last week, individual investors endured the biggest losses as the stock fell by 8.5%.

Let’s delve deeper into each type of owner of Tonze New Energy TechnologyLtd, beginning with the chart below.

Check out our latest analysis for Tonze New Energy TechnologyLtd

What Does The Institutional Ownership Tell Us About Tonze New Energy TechnologyLtd?

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.

Tonze New Energy TechnologyLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Tonze New Energy TechnologyLtd’s earnings history below. Of course, the future is what really matters.

We note that hedge funds don’t have a meaningful investment in Tonze New Energy TechnologyLtd. Shantou City Tianji Co., Ltd. is currently the largest shareholder, with 15% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.7% and 6.1% of the stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. As far as we can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Tonze New Energy TechnologyLtd

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

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 data suggests that insiders own under 1% of Tonze New Energy Technology Co.,Ltd. in their own names. But they may have an indirect interest through a corporate structure that we haven’t picked up on. It appears that the board holds about CN¥5.9m worth of stock. This compares to a market capitalization of CN¥5.1b. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public — including retail investors — own 58% of Tonze New Energy TechnologyLtd. 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

Our data indicates that Private Companies hold 30%, of the company’s shares. 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.

Public Company Ownership

It appears to us that public companies own 6.4% of Tonze New Energy TechnologyLtd. 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. To that end, you should learn about the 3 warning signs we’ve spotted with Tonze New Energy TechnologyLtd (including 1 which can’t be ignored) .

If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, backed by strong financial data.

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.