Key Insights

• Jiangsu NanFang PrecisionLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 9 investors have a majority stake in the company with 50% ownership
• 39% of Jiangsu NanFang PrecisionLtd is held by insiders

To get a sense of who is truly in control of Jiangsu NanFang Precision Co.,Ltd. (SZSE:002553), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 49% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

While insiders who own 39% came under pressure after market cap dropped to CN¥4.2b last week,retail investors took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangsu NanFang PrecisionLtd.

See our latest analysis for Jiangsu NanFang PrecisionLtd

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

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.

As you can see, institutional investors have a fair amount of stake in Jiangsu NanFang PrecisionLtd. 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 Jiangsu NanFang PrecisionLtd's earnings history below. Of course, the future is what really matters.

Jiangsu NanFang PrecisionLtd is not owned by hedge funds. Our data shows that Jianwei Shi is the largest shareholder with 35% of shares outstanding. With 6.3% 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.

On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 Jiangsu NanFang PrecisionLtd

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.

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 insiders own a significant proportion of Jiangsu NanFang Precision Co.,Ltd.. Insiders own CN¥1.6b worth of shares in the CN¥4.2b company. 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 49% stake in Jiangsu NanFang PrecisionLtd. 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 Jiangsu NanFang PrecisionLtd better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Jiangsu NanFang PrecisionLtd (including 1 which can't be ignored) .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.