46% of the shares of Shandong Gold Mining Co., Ltd. (SHSE:600547) are privately owned, 36% are owned by private investors.

Key findings

• The significant control of gold mining in Shandong by private companies means that the public has more influence on management and governance-related decisions.
• The four largest shareholders own 50% of the company
• Institutional ownership of Shandong Gold Mining is 16%

To get a sense of who really has control of Shandong Gold Mining Co., Ltd. (SHSE:600547), it’s important to understand the ownership structure of the company. And the group that holds the biggest piece of the pie is Private Companies, with 46%. In other words, the group stands to gain the most (or lose the most) from their investment in the company.

Private investors now make up 36% of the company’s shareholders.

Let’s take a closer look at what the different types of shareholders can tell us about Shandong Gold Mining.

Check out our latest analysis for Shandong Gold Mining

What does institutional ownership tell us about gold mining in Shandong?

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 their registry, especially if they’re growing.

We can see that Shandong Gold Mining has institutional investors; and they hold a large portion of the company’s shares. This may indicate that the company enjoys a certain level of trust in the investment community. However, one should be wary of relying on the supposed validation that institutional investors bring. They too are sometimes wrong. If multiple institutions change their minds on a stock at the same time, the share price can fall quickly. It is therefore worth taking a look at Shandong Gold Mining’s earnings history below. Of course, the future is what really matters.

Shandong Gold Mining is not owned by hedge funds. Shandong Gold Group Co., Ltd is currently the largest shareholder with 45% of the outstanding shares. In comparison, the second and third largest shareholders hold about 2.4% and 1.7% of the shares, respectively.

To make our study even more interesting, we found that the top four shareholders control more than half of the company, meaning that this group has significant influence on the company’s decision-making.

While studying institutional ownership of a company can enrich your research, it is also a good practice to research analyst recommendations to get a deeper understanding of a stock’s expected performance. There are a considerable number of analysts covering the stock, so it could be useful to find out their overall view on the future.

Insider ownership of Shandong Gold Mining

The definition of corporate insiders can be subjective and varies by jurisdiction. Our data reflects individual insiders and captures at least board members. Management is ultimately accountable to the board. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Insider ownership is positive when it signals that management thinks like the true owners of the company. However, high insider ownership can also give enormous power to a small group within the company. This can be negative in some circumstances.

Our latest data shows that insiders own some shares in Shandong Gold Mining Co., Ltd. Insiders own CNY2.0 billion worth of shares (at current price). It’s good to see this level of investment. You can check here to see if these insiders have been buying recently.

Public property

The general public, usually retail investors, owns a 36% stake in Shandong Gold Mining. While this size of ownership is not enough to sway a political decision in their favor, they can still collectively influence company policy.

Private company ownership

We can see that private companies own 46% of the shares outstanding. It’s difficult to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next Steps:

While it is worth considering the different groups that own a company, there are other factors that are even more important. One should be aware that Shandong Gold Mining 1 warning signal in our investment analysis you should know about…

If you’re like me, you might want to think about whether this company will grow or shrink. Luckily, you can check out this free report showing analyst forecasts for the future.

NB: The figures in this article are calculated using the last twelve months’ data, which refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual report.

Do you have feedback on this article? Are you concerned about the content? Contact us directly from us. Alternatively, send an email to editorial-team (at) simplywallst.com.

This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.