Retail investors are JDM JingDaMachine (Ningbo) Co.Ltd's (SHSE:603088) biggest owners and were rewarded after market cap rose by CN¥328m last week

Key Insights

• Significant control over JDM JingDaMachine (Ningbo)Ltd by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 6 shareholders own 52% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of JDM JingDaMachine (Ningbo) Co.Ltd (SHSE:603088), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 42% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, retail investors benefitted the most after the company's market cap rose by CN¥328m last week.

Let's delve deeper into each type of owner of JDM JingDaMachine (Ningbo)Ltd, beginning with the chart below.

See our latest analysis for JDM JingDaMachine (Ningbo)Ltd

What Does The Institutional Ownership Tell Us About JDM JingDaMachine (Ningbo)Ltd?

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.

As you can see, institutional investors have a fair amount of stake in JDM JingDaMachine (Ningbo)Ltd. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see JDM JingDaMachine (Ningbo)Ltd's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in JDM JingDaMachine (Ningbo)Ltd. Ningbo Tongshang Group Co., Ltd. is currently the company's largest shareholder with 29% of shares outstanding. Liangcai Zheng is the second largest shareholder owning 5.7% of common stock, and Ningbo Guangda Investment Co., Ltd. holds about 5.0% of the company stock.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of JDM JingDaMachine (Ningbo)Ltd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

We can report that insiders do own shares in JDM JingDaMachine (Ningbo) Co.Ltd. In their own names, insiders own CN¥289m worth of stock in the CN¥3.0b company. This shows at least some alignment. 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 42% stake in JDM JingDaMachine (Ningbo)Ltd. 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

It seems that Private Companies own 39%, of the JDM JingDaMachine (Ningbo)Ltd stock. 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 JDM JingDaMachine (Ningbo)Ltd better, we need to consider many other factors. For instance, we've identified 1 warning sign for JDM JingDaMachine (Ningbo)Ltd that you should be aware of.

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.