Jiangsu Daybright Intelligent Electric Co.,LTD.'s (SZSE:300670) last week's 10% decline must have disappointed retail investors who have a significant stake

Key Insights

• The considerable ownership by retail investors in Jiangsu Daybright Intelligent ElectricLTD indicates that they collectively have a greater say in management and business strategy
• A total of 15 investors have a majority stake in the company with 50% ownership
• Insiders own 39% of Jiangsu Daybright Intelligent ElectricLTD

Every investor in Jiangsu Daybright Intelligent Electric Co.,LTD. (SZSE:300670) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 39% came under pressure after market cap dropped to CN¥2.1b last week,retail investors took the most losses.

Let's delve deeper into each type of owner of Jiangsu Daybright Intelligent ElectricLTD, beginning with the chart below.

Check out our latest analysis for Jiangsu Daybright Intelligent ElectricLTD

What Does The Institutional Ownership Tell Us About Jiangsu Daybright Intelligent ElectricLTD?

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.

Since institutions own only a small portion of Jiangsu Daybright Intelligent ElectricLTD, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Jiangsu Daybright Intelligent ElectricLTD. Jie Chen is currently the company's largest shareholder with 36% of shares outstanding. Nanjing Mingzhao Investment Management Co., Ltd. is the second largest shareholder owning 7.3% of common stock, and Wang Guohua holds about 1.5% of the company stock.

A deeper look at our ownership data shows that the top 15 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. 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 Daybright Intelligent ElectricLTD

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Daybright Intelligent Electric Co.,LTD.. Insiders own CN¥816m worth of shares in the CN¥2.1b 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

The general public -- including retail investors -- own 50% of Jiangsu Daybright Intelligent ElectricLTD. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

It seems that Private Companies own 7.3%, of the Jiangsu Daybright Intelligent ElectricLTD stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for Jiangsu Daybright Intelligent ElectricLTD that you should be aware of before investing here.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.