Jiangshan Oupai Door Industry Co., Ltd's (SHSE:603208) market cap increased by CN¥390m, insiders receive a 66% cut

Key Insights

• Insiders appear to have a vested interest in Jiangshan Oupai Door Industry's growth, as seen by their sizeable ownership
• 52% of the business is held by the top 2 shareholders
• Institutions own 20% of Jiangshan Oupai Door Industry

If you want to know who really controls Jiangshan Oupai Door Industry Co., Ltd (SHSE:603208), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 66% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥390m last week.

In the chart below, we zoom in on the different ownership groups of Jiangshan Oupai Door Industry.

See our latest analysis for Jiangshan Oupai Door Industry

What Does The Institutional Ownership Tell Us About Jiangshan Oupai Door Industry?

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.

We can see that Jiangshan Oupai Door Industry does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Jiangshan Oupai Door Industry, (below). Of course, keep in mind that there are other factors to consider, too.

Jiangshan Oupai Door Industry is not owned by hedge funds. Shui Gen Wu is currently the largest shareholder, with 29% of shares outstanding. Zhong Wang is the second largest shareholder owning 23% of common stock, and Shui Yan Wu holds about 10.0% of the company stock. Two of the top three shareholders happen to be Chief Executive Officer and Member of the Board of Directors, respectively. That is, insiders feature higher up in the heirarchy of the company's top shareholders.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Jiangshan Oupai Door Industry

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.

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.

Our most recent data indicates that insiders own the majority of Jiangshan Oupai Door Industry Co., Ltd. This means they can collectively make decisions for the company. That means they own CN¥2.1b worth of shares in the CN¥3.3b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Jiangshan Oupai Door Industry that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.