Key Insights

• Significantly high institutional ownership implies Jilin OLED Material Tech's stock price is sensitive to their trading actions
• A total of 5 investors have a majority stake in the company with 52% ownership
• Insiders own 33% of Jilin OLED Material Tech

To get a sense of who is truly in control of Jilin OLED Material Tech Co., Ltd. (SHSE:688378), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 35% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And institutional investors endured the highest losses after the company's share price fell by 8.7% last week. The recent loss, which adds to a one-year loss of 31% for stockholders, may not sit well with this group of investors. Also referred to as "smart money", institutions have a lot of sway over how a stock's price moves. As a result, if the downtrend continues, institutions may face pressures to sell Jilin OLED Material Tech, which might have negative implications on individual investors.

Let's take a closer look to see what the different types of shareholders can tell us about Jilin OLED Material Tech.

What Does The Institutional Ownership Tell Us About Jilin OLED Material Tech?

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.

We can see that Jilin OLED Material Tech does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Jilin OLED Material Tech's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Jilin OLED Material Tech. Looking at our data, we can see that the largest shareholder is the CEO Jingquan Xuan with 32% of shares outstanding. Invesco Great Wall Fund Management Co. Ltd is the second largest shareholder owning 7.8% of common stock, and Dacheng Fund Management Co., Ltd. holds about 4.9% of the company stock.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Jilin OLED Material Tech

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Jilin OLED Material Tech Co., Ltd.. Insiders have a CN¥1.6b stake in this CN¥4.9b business. 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-- including retail investors -- own 25% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

We can see that public companies hold 5.4% of the Jilin OLED Material Tech shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jilin OLED Material Tech better, we need to consider many other factors. Take risks for example - Jilin OLED Material Tech has 3 warning signs (and 1 which is significant) we think 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.

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