Key Insights

• Insiders appear to have a vested interest in Jiangsu Wujin Stainless Steel Pipe GroupLTD's growth, as seen by their sizeable ownership
• 52% of the business is held by the top 8 shareholders
• 22% of Jiangsu Wujin Stainless Steel Pipe GroupLTD is held by Institutions

To get a sense of who is truly in control of Jiangsu Wujin Stainless Steel Pipe Group CO.,LTD. (SHSE:603878), it is important to understand the ownership structure of the business. With 39% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, insiders endured the biggest losses as the stock fell by 10%.

Let's delve deeper into each type of owner of Jiangsu Wujin Stainless Steel Pipe GroupLTD, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Jiangsu Wujin Stainless Steel Pipe GroupLTD?

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.

Jiangsu Wujin Stainless Steel Pipe GroupLTD 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. 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 Jiangsu Wujin Stainless Steel Pipe GroupLTD's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Jiangsu Wujin Stainless Steel Pipe GroupLTD. Guo Liang Zhu is currently the largest shareholder, with 18% of shares outstanding. In comparison, the second and third largest shareholders hold about 13% and 5.4% of the stock. Qi Zhu, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Jiangsu Wujin Stainless Steel Pipe GroupLTD

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Jiangsu Wujin Stainless Steel Pipe Group CO.,LTD.. It has a market capitalization of just CN¥3.3b, and insiders have CN¥1.3b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 34% stake in the company, and hence can't easily be ignored. 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

Our data indicates that Private Companies hold 5.4%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu Wujin Stainless Steel Pipe GroupLTD better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Jiangsu Wujin Stainless Steel Pipe GroupLTD .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.