Private companies invested in Jiangyin Pivot Automotive Products Co., Ltd. (SZSE:301181) copped the brunt of last week's CN¥265m market cap decline

Key Insights

• Significant control over Jiangyin Pivot Automotive Products by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 2 shareholders own 50% of the company
• 29% of Jiangyin Pivot Automotive Products is held by insiders

If you want to know who really controls Jiangyin Pivot Automotive Products Co., Ltd. (SZSE:301181), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 38% ownership. 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 29% shares weren’t spared from last week’s CN¥265m market cap drop, private companies as a group suffered the maximum losses

Let's delve deeper into each type of owner of Jiangyin Pivot Automotive Products, beginning with the chart below.

See our latest analysis for Jiangyin Pivot Automotive Products

What Does The Institutional Ownership Tell Us About Jiangyin Pivot Automotive Products?

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.

Institutions have a very small stake in Jiangyin Pivot Automotive Products. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Hedge funds don't have many shares in Jiangyin Pivot Automotive Products. Looking at our data, we can see that the largest shareholder is Jiangyin Pivot Network Technology Co., Ltd. with 34% of shares outstanding. With 17% and 8.1% of the shares outstanding respectively, Qi Zhao and Hao Shen are the second and third largest shareholders. Hao Shen, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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 Jiangyin Pivot Automotive Products

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 Jiangyin Pivot Automotive Products Co., Ltd.. Insiders have a CN¥662m stake in this CN¥2.3b business. 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 28% stake in Jiangyin Pivot Automotive Products. 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 38%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangyin Pivot Automotive Products better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Jiangyin Pivot Automotive Products you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.