Key Insights

• Insiders appear to have a vested interest in Jafron BiomedicalLtd's growth, as seen by their sizeable ownership
• A total of 3 investors have a majority stake in the company with 50% ownership
• 11% of Jafron BiomedicalLtd is held by Institutions

A look at the shareholders of Jafron Biomedical Co.,Ltd. (SZSE:300529) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 51% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 4.5% decline in share price, insiders suffered the most losses.

Let's delve deeper into each type of owner of Jafron BiomedicalLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Jafron BiomedicalLtd?

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.

Jafron BiomedicalLtd 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. 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 Jafron BiomedicalLtd's earnings history below. Of course, the future is what really matters.

Jafron BiomedicalLtd is not owned by hedge funds. With a 46% stake, CEO Fan Dong is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 2.8% and 1.8%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Xian Min Tang is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Jafron BiomedicalLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own the majority of Jafron Biomedical Co.,Ltd.. This means they can collectively make decisions for the company. Given it has a market cap of CN¥23b, that means insiders have a whopping CN¥12b worth of shares in their own names. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jafron BiomedicalLtd. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Jafron BiomedicalLtd is showing 1 warning sign in our investment analysis , you should know about...

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.