Hangzhou Jingye Intelligent Technology Co., Ltd. (SHSE:688290) adds CN¥437m in market cap and insiders have a 34% stake in that gain

Key Insights

• Insiders appear to have a vested interest in Hangzhou Jingye Intelligent Technology's growth, as seen by their sizeable ownership
• A total of 3 investors have a majority stake in the company with 51% ownership
• Institutions own 21% of Hangzhou Jingye Intelligent Technology

To get a sense of who is truly in control of Hangzhou Jingye Intelligent Technology Co., Ltd. (SHSE:688290), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 34% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥437m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Hangzhou Jingye Intelligent Technology.

View our latest analysis for Hangzhou Jingye Intelligent Technology

What Does The Institutional Ownership Tell Us About Hangzhou Jingye Intelligent Technology?

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.

Hangzhou Jingye Intelligent Technology 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. 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 Hangzhou Jingye Intelligent Technology's earnings history below. Of course, the future is what really matters.

Hangzhou Jingye Intelligent Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Jianliang Lai with 34% of shares outstanding. With 9.1% and 8.7% of the shares outstanding respectively, China National Nuclear Corporation and Hangzhou Yimi Investment Partnership Enterprise (Limited Partnership) are the second and third largest shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. 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 Hangzhou Jingye Intelligent Technology

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. 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.

It seems insiders own a significant proportion of Hangzhou Jingye Intelligent Technology Co., Ltd.. Insiders own CN¥1.6b worth of shares in the CN¥4.8b 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 15% stake in the company, and hence can't easily be ignored. 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 Equity Ownership

Private equity firms hold a 5.0% stake in Hangzhou Jingye Intelligent Technology. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

It seems that Private Companies own 26%, of the Hangzhou Jingye Intelligent Technology 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 Hangzhou Jingye Intelligent Technology better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Hangzhou Jingye Intelligent Technology you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.