Insiders are the top stockholders in Jiangsu Xinri E-Vehicle Co., Ltd. (SHSE:603787), and the recent 13% drop might have disappointed them

Key Insights

• Insiders appear to have a vested interest in Jiangsu Xinri E-Vehicle's growth, as seen by their sizeable ownership
• 57% of the business is held by the top 3 shareholders
• 11% of Jiangsu Xinri E-Vehicle is held by Institutions

If you want to know who really controls Jiangsu Xinri E-Vehicle Co., Ltd. (SHSE:603787), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to CN¥2.4b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Jiangsu Xinri E-Vehicle, beginning with the chart below.

View our latest analysis for Jiangsu Xinri E-Vehicle

What Does The Institutional Ownership Tell Us About Jiangsu Xinri E-Vehicle?

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.

Jiangsu Xinri E-Vehicle 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 Jiangsu Xinri E-Vehicle'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 Xinri E-Vehicle. Chong Shun Zhang is currently the largest shareholder, with 40% of shares outstanding. Yu Ying Chen is the second largest shareholder owning 8.6% of common stock, and Anji Zhunlai Enterprise Management Partnership Enterprise (Limited Partnership) holds about 8.0% of the company stock.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Jiangsu Xinri E-Vehicle

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

It seems that insiders own more than half the Jiangsu Xinri E-Vehicle Co., Ltd. stock. This gives them a lot of power. So they have a CN¥1.4b stake in this CN¥2.4b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jiangsu Xinri E-Vehicle. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 8.0%, of the Jiangsu Xinri E-Vehicle stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu Xinri E-Vehicle better, we need to consider many other factors. For example, we've discovered 4 warning signs for Jiangsu Xinri E-Vehicle that you should be aware of before investing here.

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.