Key Insights

• The considerable ownership by private companies in Jiangxi Ganyue ExpresswayLTD indicates that they collectively have a greater say in management and business strategy
• 54% of the business is held by the top 2 shareholders
• Institutional ownership in Jiangxi Ganyue ExpresswayLTD is 15%

To get a sense of who is truly in control of Jiangxi Ganyue Expressway CO.,LTD. (SHSE:600269), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 53% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 5.9% decline in share price, private companies suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangxi Ganyue ExpresswayLTD.

What Does The Institutional Ownership Tell Us About Jiangxi Ganyue ExpresswayLTD?

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.

We can see that Jiangxi Ganyue ExpresswayLTD does have institutional investors; and they hold a good portion of the company's stock. 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 Jiangxi Ganyue ExpresswayLTD's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiangxi Ganyue ExpresswayLTD is not owned by hedge funds. The company's largest shareholder is Jiangxi Provincial Communications Investment Group Co., Ltd., with ownership of 48%. Great Wall Life Insurance Co., Ltd, Asset Management Arm is the second largest shareholder owning 6.2% of common stock, and Jiangxi Provincial Port Group Co. , Ltd. holds about 5.0% of the company stock.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Jiangxi Ganyue ExpresswayLTD

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that Jiangxi Ganyue Expressway CO.,LTD. insiders own under 1% of the company. 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 CN¥39m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in Jiangxi Ganyue ExpresswayLTD. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 53%, of the shares on issue. 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.

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 be aware of the 2 warning signs we've spotted with Jiangxi Ganyue ExpresswayLTD .

Of course this may not be the best stock to buy. So take a peek at this free 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.

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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.