Key Insights

• Significant control over Jiangsu Olive Sensors High-Tech by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 23 investors have a majority stake in the company with 44% ownership
• 43% of Jiangsu Olive Sensors High-Tech is held by insiders

If you want to know who really controls Jiangsu Olive Sensors High-Tech Co., Ltd. (SZSE:300507), 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 56% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders who own 43% came under pressure after market cap dropped to CN¥5.4b last week,retail investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Jiangsu Olive Sensors High-Tech.

What Does The Lack Of Institutional Ownership Tell Us About Jiangsu Olive Sensors High-Tech?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Jiangsu Olive Sensors High-Tech, for yourself, below.

We note that hedge funds don't have a meaningful investment in Jiangsu Olive Sensors High-Tech. Looking at our data, we can see that the largest shareholder is Hongqing Li with 37% of shares outstanding. In comparison, the second and third largest shareholders hold about 3.5% and 1.1% of the stock. Fei Teng, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On studying our ownership data, we found that 23 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Olive Sensors High-Tech

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.

Our most recent data indicates that insiders own a reasonable proportion of Jiangsu Olive Sensors High-Tech Co., Ltd.. It has a market capitalization of just CN¥5.4b, and insiders have CN¥2.3b worth of shares in their own names. 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 substantial 56% stake in Jiangsu Olive Sensors High-Tech, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Jiangsu Olive Sensors High-Tech you should know about.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.