CGN Mining Company Limited (HKG:1164) stock most popular amongst private companies who own 56%, while individual investors hold 22%

Key Insights

• The considerable ownership by private companies in CGN Mining indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is China General Nuclear Power Corporation with a 56% stake
• Institutions own 21% of CGN Mining

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Every investor in CGN Mining Company Limited (HKG:1164) should be aware of the most powerful shareholder groups. We can see that private companies own the lion’s share in the company with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors, on the other hand, account for 22% of the company’s stockholders.

Let’s take a closer look to see what the different types of shareholders can tell us about CGN Mining.

View our latest analysis for CGN Mining

What Does The Institutional Ownership Tell Us About CGN Mining?

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 CGN Mining. 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 CGN Mining’s earnings history below. Of course, the future is what really matters.

We note that hedge funds don’t have a meaningful investment in CGN Mining. The company’s largest shareholder is China General Nuclear Power Corporation, with ownership of 56%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Chengtong Mixed Reform Private Fund Management Co., Ltd. is the second largest shareholder owning 4.8% of common stock, and Van Eck Associates Corporation holds about 3.8% of the company stock.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of CGN Mining

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 CGN Mining Company Limited in their own names. However, it’s possible that insiders might have an indirect interest through a more complex structure. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around HK$378k worth of shares (at current prices). Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 22% stake in CGN Mining. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 56%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we’ve spotted 3 warning signs for CGN Mining (of which 2 shouldn’t be ignored!) you should know about.

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.