Key Insights

• Insiders appear to have a vested interest in NanJing GOVA Technology's growth, as seen by their sizeable ownership
• The top 4 shareholders own 55% of the company
• Institutional ownership in NanJing GOVA Technology is 12%

Every investor in NanJing GOVA Technology Co., Ltd. (SHSE:688539) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 58% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit CN¥5.8b market cap following a 7.0% gain in the stock.

In the chart below, we zoom in on the different ownership groups of NanJing GOVA Technology.

See our latest analysis for NanJing GOVA Technology

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

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.

NanJing GOVA Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of NanJing GOVA Technology, (below). Of course, keep in mind that there are other factors to consider, too.

NanJing GOVA Technology is not owned by hedge funds. The company's largest shareholder is Weiping Li, with ownership of 18%. In comparison, the second and third largest shareholders hold about 14% and 12% of the stock. 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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

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. 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.

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.

Our information suggests that insiders own more than half of NanJing GOVA Technology Co., Ltd.. This gives them effective control of the company. That means they own CN¥3.4b worth of shares in the CN¥5.8b company. That's quite meaningful. 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

The general public, who are usually individual investors, hold a 28% stake in NanJing GOVA Technology. 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.

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. Take risks for example - NanJing GOVA Technology has 1 warning sign we think you should be aware of.

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.