Key Insights

• Significant insider control over Chengdu Jiafaantai Education TechnologyLtd implies vested interests in company growth
• The top 4 shareholders own 52% of the company
• Institutional ownership in Chengdu Jiafaantai Education TechnologyLtd is 19%

To get a sense of who is truly in control of Chengdu Jiafaantai Education Technology Co.,Ltd. (SZSE:300559), it is important to understand the ownership structure of the business. With 46% stake, individual insiders possess the maximum shares in the company. 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 were the biggest beneficiaries of last week's 12% gain.

In the chart below, we zoom in on the different ownership groups of Chengdu Jiafaantai Education TechnologyLtd.

What Does The Institutional Ownership Tell Us About Chengdu Jiafaantai Education TechnologyLtd?

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 Chengdu Jiafaantai Education TechnologyLtd 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 Chengdu Jiafaantai Education TechnologyLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Chengdu Jiafaantai Education TechnologyLtd. Our data shows that Bin Yuan is the largest shareholder with 30% of shares outstanding. With 8.1% and 7.7% of the shares outstanding respectively, Yun Ling and Da Qiang Chen are the second and third largest shareholders.

To make our study more interesting, we found that the top 4 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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Chengdu Jiafaantai Education TechnologyLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems insiders own a significant proportion of Chengdu Jiafaantai Education Technology Co.,Ltd.. Insiders have a CN¥1.7b stake in this CN¥3.7b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 26% stake in Chengdu Jiafaantai Education TechnologyLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 7.1%, of the Chengdu Jiafaantai Education TechnologyLtd stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Chengdu Jiafaantai Education TechnologyLtd better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Chengdu Jiafaantai Education TechnologyLtd you should be aware of.

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