Retail investors among JILIN JINGUAN ELECTRIC Co.,Ltd's (SZSE:300510) largest stockholders and were hit after last week's 10% price drop

Key Insights

• The considerable ownership by retail investors in JILIN JINGUAN ELECTRICLtd indicates that they collectively have a greater say in management and business strategy
• A total of 25 investors have a majority stake in the company with 40% ownership
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in JILIN JINGUAN ELECTRIC Co.,Ltd (SZSE:300510) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to CN¥3.2b last week, retail investors would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about JILIN JINGUAN ELECTRICLtd.

Check out our latest analysis for JILIN JINGUAN ELECTRICLtd

What Does The Institutional Ownership Tell Us About JILIN JINGUAN ELECTRICLtd?

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.

JILIN JINGUAN ELECTRICLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 JILIN JINGUAN ELECTRICLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in JILIN JINGUAN ELECTRICLtd. Our data shows that Luoyang Capital Development Group Co., Ltd. is the largest shareholder with 26% of shares outstanding. The second and third largest shareholders are Hai Jiang Xu and Chang Guo, with an equal amount of shares to their name at 3.1%.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of JILIN JINGUAN ELECTRICLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Our most recent data indicates that insiders own some shares in JILIN JINGUAN ELECTRIC Co.,Ltd. It has a market capitalization of just CN¥3.2b, and insiders have CN¥196m worth of shares, in their own names. 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, mostly comprising of individual investors, collectively holds 60% of JILIN JINGUAN ELECTRICLtd shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

It seems that Private Companies own 26%, of the JILIN JINGUAN ELECTRICLtd 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 JILIN JINGUAN ELECTRICLtd better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for JILIN JINGUAN ELECTRICLtd you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.