Individual investors invested in Jiangsu Jingyuan Environmental Protection Co.,Ltd. (SHSE:688096) up 11% last week, insiders too were rewarded

Key Insights

• Significant control over Jiangsu Jingyuan Environmental ProtectionLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• 49% of the business is held by the top 24 shareholders
• Insider ownership in Jiangsu Jingyuan Environmental ProtectionLtd is 35%

To get a sense of who is truly in control of Jiangsu Jingyuan Environmental Protection Co.,Ltd. (SHSE:688096), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 51% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors gained the most after market cap touched CN¥1.4b last week, while insiders who own 35% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangsu Jingyuan Environmental ProtectionLtd.

Check out our latest analysis for Jiangsu Jingyuan Environmental ProtectionLtd

What Does The Institutional Ownership Tell Us About Jiangsu Jingyuan Environmental ProtectionLtd?

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 Jiangsu Jingyuan Environmental ProtectionLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Jiangsu Jingyuan Environmental ProtectionLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Jiangsu Jingyuan Environmental ProtectionLtd. With a 12% stake, CEO Wulin Li is the largest shareholder. Li He is the second largest shareholder owning 8.3% of common stock, and Guangdong Huadi Investment Group Co., Ltd. holds about 5.6% of the company stock.

Our studies suggest that the top 24 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Jiangsu Jingyuan Environmental ProtectionLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Jiangsu Jingyuan Environmental Protection Co.,Ltd.. Insiders own CN¥481m worth of shares in the CN¥1.4b company. 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 -- including retail investors -- own 51% of Jiangsu Jingyuan Environmental ProtectionLtd. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Equity Ownership

With an ownership of 5.6%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Jiangsu Jingyuan Environmental ProtectionLtd you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.