Key Insights

• Insiders appear to have a vested interest in Nanjing King-Friend Biochemical PharmaceuticalLtd's growth, as seen by their sizeable ownership
• The top 3 shareholders own 68% of the company
• Institutional ownership in Nanjing King-Friend Biochemical PharmaceuticalLtd is 11%

To get a sense of who is truly in control of Nanjing King-Friend Biochemical Pharmaceutical Co.,Ltd. (SHSE:603707), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, insiders endured the biggest losses as the stock fell by 4.8%.

Let's take a closer look to see what the different types of shareholders can tell us about Nanjing King-Friend Biochemical PharmaceuticalLtd.

What Does The Institutional Ownership Tell Us About Nanjing King-Friend Biochemical PharmaceuticalLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Nanjing King-Friend Biochemical PharmaceuticalLtd. 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. 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 Nanjing King-Friend Biochemical PharmaceuticalLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Nanjing King-Friend Biochemical PharmaceuticalLtd. Ju Hua Xie is currently the company's largest shareholder with 27% of shares outstanding. In comparison, the second and third largest shareholders hold about 21% and 20% of the stock.

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 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 Nanjing King-Friend Biochemical PharmaceuticalLtd

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. 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.

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.

It seems that insiders own more than half the Nanjing King-Friend Biochemical Pharmaceutical Co.,Ltd. stock. This gives them a lot of power. Given it has a market cap of CN¥22b, that means insiders have a whopping CN¥12b worth of shares in their own names. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Nanjing King-Friend Biochemical PharmaceuticalLtd. 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 21%, of the shares on issue. 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:

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 Nanjing King-Friend Biochemical PharmaceuticalLtd is showing 1 warning sign in our investment analysis , you should know about...

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.