Institutions along with private companies who hold considerable shares inBeijing Jingpin Tezhuang Technology Co.,Ltd. (SHSE:688084) come under pressure; lose 14% of holdings value

Key Insights

• Beijing Jingpin Tezhuang TechnologyLtd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 52% of the business is held by the top 3 shareholders
• Institutional ownership in Beijing Jingpin Tezhuang TechnologyLtd is 21%

A look at the shareholders of Beijing Jingpin Tezhuang Technology Co.,Ltd. (SHSE:688084) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions who own 21% came under pressure after market cap dropped to CN¥4.2b last week,private companies took the most losses.

In the chart below, we zoom in on the different ownership groups of Beijing Jingpin Tezhuang TechnologyLtd.

View our latest analysis for Beijing Jingpin Tezhuang TechnologyLtd

What Does The Institutional Ownership Tell Us About Beijing Jingpin Tezhuang TechnologyLtd?

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.

We can see that Beijing Jingpin Tezhuang TechnologyLtd 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. 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 Beijing Jingpin Tezhuang TechnologyLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Beijing Jingpin Tezhuang TechnologyLtd. The company's largest shareholder is Tianjin Junrong Huizhi Technology Center (Limited Partnership), with ownership of 26%. For context, the second largest shareholder holds about 17% of the shares outstanding, followed by an ownership of 10% by the third-largest shareholder.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Beijing Jingpin Tezhuang TechnologyLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can report that insiders do own shares in Beijing Jingpin Tezhuang Technology Co.,Ltd.. As individuals, the insiders collectively own CN¥78m worth of the CN¥4.2b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 19% stake in Beijing Jingpin Tezhuang TechnologyLtd. 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

We can see that Private Companies own 56%, of the shares on issue. 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 Beijing Jingpin Tezhuang TechnologyLtd better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Beijing Jingpin Tezhuang TechnologyLtd you should be aware of, and 2 of them are a bit unpleasant.

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.