Key Insights

• NanJing GOVA Technology's significant insider ownership suggests inherent interests in company's expansion
• 55% of the business is held by the top 4 shareholders
• Institutional ownership in NanJing GOVA Technology is 15%

A look at the shareholders of NanJing GOVA Technology Co., Ltd. (SHSE:688539) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 58% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to CN¥5.6b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about NanJing GOVA Technology.

What Does The Institutional Ownership Tell Us About NanJing GOVA Technology?

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.

NanJing GOVA Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 NanJing GOVA Technology's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in NanJing GOVA Technology. Weiping Li is currently the company's largest shareholder with 18% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 14% and 12%, of the shares outstanding, respectively. Biao Huang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On looking further, we found that 55% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of NanJing GOVA Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 most recent data indicates that insiders own the majority of NanJing GOVA Technology Co., Ltd.. This means they can collectively make decisions for the company. So they have a CN¥3.3b stake in this CN¥5.6b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over NanJing GOVA Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand NanJing GOVA Technology better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for NanJing GOVA Technology (of which 1 is a bit concerning!) you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.