Key Insights

• Ningbo Fujia Industrial's significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Yuedan Wang with a 72% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Ningbo Fujia Industrial Co., Ltd. (SHSE:603219) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 82% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, insiders endured the biggest losses as the stock fell by 16%.

Let's delve deeper into each type of owner of Ningbo Fujia Industrial, beginning with the chart below.

Check out our latest analysis for Ningbo Fujia Industrial

What Does The Institutional Ownership Tell Us About Ningbo Fujia Industrial?

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.

Institutions have a very small stake in Ningbo Fujia Industrial. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Ningbo Fujia Industrial. Yuedan Wang is currently the company's largest shareholder with 72% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 7.8% of the shares outstanding, followed by an ownership of 2.2% by the third-largest shareholder. Yiding Lang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Ningbo Fujia Industrial

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.

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

It seems that insiders own more than half the Ningbo Fujia Industrial Co., Ltd. stock. This gives them a lot of power. So they have a CN¥5.8b stake in this CN¥7.1b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 12% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Ningbo Fujia Industrial better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Ningbo Fujia Industrial (including 1 which makes us a bit uncomfortable) .

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.