Retail investors invested in JDM JingDaMachine (Ningbo) Co.Ltd (SHSE:603088) copped the brunt of last week's CN¥394m market cap decline

Key Insights

• The considerable ownership by retail investors in JDM JingDaMachine (Ningbo)Ltd indicates that they collectively have a greater say in management and business strategy
• The top 6 shareholders own 52% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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 43% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, retail investors endured the biggest losses as the stock fell by 9.6%.

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?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

JDM JingDaMachine (Ningbo)Ltd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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.

JDM JingDaMachine (Ningbo)Ltd is not owned by hedge funds. Our data shows that Ningbo Tongshang Group Co., Ltd. is the largest shareholder with 29% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.7% and 5.0% of the 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 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 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. 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.

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.

We can see that insiders own shares in JDM JingDaMachine (Ningbo) Co.Ltd. As individuals, the insiders collectively own CN¥364m worth of the CN¥3.7b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over JDM JingDaMachine (Ningbo)Ltd. 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 39%, of the JDM JingDaMachine (Ningbo)Ltd stock. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for JDM JingDaMachine (Ningbo)Ltd that you should be aware of before investing here.

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.