Key Insights

• The considerable ownership by retail investors in Jiangsu Yuyue Medical Equipment & Supply indicates that they collectively have a greater say in management and business strategy
• 52% of the business is held by the top 7 shareholders
• 18% of Jiangsu Yuyue Medical Equipment & Supply is held by insiders

If you want to know who really controls Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (SZSE:002223), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 35% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors were the biggest beneficiaries of last week's 7.7% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangsu Yuyue Medical Equipment & Supply.

What Does The Institutional Ownership Tell Us About Jiangsu Yuyue Medical Equipment & Supply?

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.

As you can see, institutional investors have a fair amount of stake in Jiangsu Yuyue Medical Equipment & Supply. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Jiangsu Yuyue Medical Equipment & Supply's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiangsu Yuyue Medical Equipment & Supply is not owned by hedge funds. Jiangsu Yuyue Technology Development Co., Ltd. is currently the largest shareholder, with 25% of shares outstanding. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 7.7% by the third-largest shareholder.

On further inspection, we found that more than half the company's shares are owned by the top 7 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Jiangsu Yuyue Medical Equipment & Supply

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Our most recent data indicates that insiders own a reasonable proportion of Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥6.9b stake in this CN¥38b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 35% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jiangsu Yuyue Medical Equipment & Supply. 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.

Private Company Ownership

It seems that Private Companies own 25%, of the Jiangsu Yuyue Medical Equipment & Supply stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu Yuyue Medical Equipment & Supply better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Jiangsu Yuyue Medical Equipment & Supply you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.