Key Insights

• Significant control over Jiangsu NanFang PrecisionLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
• 49% of the business is held by the top 11 shareholders
• Insider ownership in Jiangsu NanFang PrecisionLtd is 39%

A look at the shareholders of Jiangsu NanFang Precision Co.,Ltd. (SZSE:002553) can tell us which group is most powerful. With 51% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders, who own 39% shares weren't spared from last week's CN¥1.2b market cap drop, retail investors as a group suffered the maximum losses

Let's delve deeper into each type of owner of Jiangsu NanFang PrecisionLtd, beginning with the chart below.

Check out our latest analysis for Jiangsu NanFang PrecisionLtd

What Does The Institutional Ownership Tell Us About Jiangsu NanFang PrecisionLtd?

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.

As you can see, institutional investors have a fair amount of stake in Jiangsu NanFang PrecisionLtd. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Jiangsu NanFang PrecisionLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiangsu NanFang PrecisionLtd is not owned by hedge funds. Jianwei Shi is currently the largest shareholder, with 35% of shares outstanding. With 5.0% and 2.6% of the shares outstanding respectively, Zhejiang Jiahong Asset Management Co., Ltd. and Wei Shi are the second and third largest shareholders. Wei Shi, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

A deeper look at our ownership data shows that the top 11 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Jiangsu NanFang PrecisionLtd

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in Jiangsu NanFang Precision Co.,Ltd.. It has a market capitalization of just CN¥5.0b, and insiders have CN¥1.9b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 51% stake in Jiangsu NanFang PrecisionLtd, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu NanFang PrecisionLtd better, we need to consider many other factors. For example, we've discovered 4 warning signs for Jiangsu NanFang PrecisionLtd (2 are significant!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.