After the recent decline, Jiangsu Maixinlin Aviation Science and Technology Corp. (SHSE:688685) CEO Youzhi Zhang's holdings have lost 9.5% of their value

Key Insights

• Significant insider control over Jiangsu Maixinlin Aviation Science and Technology implies vested interests in company growth
• A total of 5 investors have a majority stake in the company with 51% ownership
• Institutions own 21% of Jiangsu Maixinlin Aviation Science and Technology

To get a sense of who is truly in control of Jiangsu Maixinlin Aviation Science and Technology Corp. (SHSE:688685), it is important to understand the ownership structure of the business. With 43% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to CN¥5.0b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of Jiangsu Maixinlin Aviation Science and Technology.

View our latest analysis for Jiangsu Maixinlin Aviation Science and Technology

What Does The Institutional Ownership Tell Us About Jiangsu Maixinlin Aviation Science and 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.

Jiangsu Maixinlin Aviation Science and Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Jiangsu Maixinlin Aviation Science and Technology's earnings history below. Of course, the future is what really matters.

Jiangsu Maixinlin Aviation Science and Technology is not owned by hedge funds. With a 33% stake, CEO Youzhi Zhang is the largest shareholder. The second and third largest shareholders are Bing Bai and Yinghui Xu, with an equal amount of shares to their name at 5.0%.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Jiangsu Maixinlin Aviation Science and 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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Jiangsu Maixinlin Aviation Science and Technology Corp.. Insiders own CN¥2.1b worth of shares in the CN¥5.0b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 34% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jiangsu Maixinlin Aviation Science and Technology. 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:

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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Jiangsu Maixinlin Aviation Science and Technology , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.