Private companies who hold 60% of Nantong Jianghai Capacitor Co. Ltd. (SZSE:002484) gained 7.0%, insiders profited as well

Key Insights

• The considerable ownership by private companies in Nantong Jianghai Capacitor indicates that they collectively have a greater say in management and business strategy
• The top 3 shareholders own 59% of the company
• Insiders own 15% of Nantong Jianghai Capacitor

If you want to know who really controls Nantong Jianghai Capacitor Co. Ltd. (SZSE:002484), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While private companies were the group that benefitted the most from last week’s CN¥1.3b market cap gain, insiders too had a 15% share in those profits.

In the chart below, we zoom in on the different ownership groups of Nantong Jianghai Capacitor.

View our latest analysis for Nantong Jianghai Capacitor

What Does The Institutional Ownership Tell Us About Nantong Jianghai Capacitor?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Nantong Jianghai Capacitor 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. 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 Nantong Jianghai Capacitor's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Nantong Jianghai Capacitor. Aidegree Investments Corp. is currently the company's largest shareholder with 29% of shares outstanding. Zhejiang Provincial Economic Construction Investment Co. is the second largest shareholder owning 16% of common stock, and Antrix Investment Limited holds about 14% of the company stock.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 59% stake.

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 Nantong Jianghai Capacitor

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own a reasonable proportion of Nantong Jianghai Capacitor Co. Ltd.. Insiders own CN¥3.1b worth of shares in the CN¥20b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 15% 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.

Private Company Ownership

Our data indicates that Private Companies hold 60%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Nantong Jianghai Capacitor better, we need to consider many other factors. For example, we've discovered 2 warning signs for Nantong Jianghai Capacitor that you should be aware of before investing here.

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.