Key Insights

• Nanjing OLO Home FurnishingLtd's significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Yantimiao Nina with a 63% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Nanjing OLO Home Furnishing Co.,Ltd (SHSE:603326), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 63% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥453m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Nanjing OLO Home FurnishingLtd.

What Does The Institutional Ownership Tell Us About Nanjing OLO Home FurnishingLtd?

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 OLO Home FurnishingLtd 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. 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 OLO Home FurnishingLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Nanjing OLO Home FurnishingLtd. Looking at our data, we can see that the largest shareholder is Yantimiao Nina with 63% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Zhong Ou Fund Management Co., Ltd is the second largest shareholder owning 8.4% of common stock, and Nanjing Ruiqi Investment Management Co., Ltd. holds about 3.5% of the company stock.

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 OLO Home FurnishingLtd

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.

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 information suggests that insiders own more than half of Nanjing OLO Home Furnishing Co.,Ltd. This gives them effective control of the company. That means they own CN¥1.5b worth of shares in the CN¥2.4b 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 23% stake in Nanjing OLO Home FurnishingLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 5.1%, of the shares on issue. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Nanjing OLO Home FurnishingLtd , and understanding them should be part of your investment process.

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.