Insiders were the biggest winners as Ningbo Fujia Industrial Co., Ltd.'s (SHSE:603219) market cap grew by CN¥369m last week

Key Insights

• Ningbo Fujia Industrial's significant insider ownership suggests inherent interests in company's expansion
• 72% of the company is held by a single shareholder (Yuedan Wang)
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Ningbo Fujia Industrial Co., Ltd. (SHSE:603219) can tell us which group is most powerful. The group holding the most number of shares in the company, around 83% 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.

As a result, insiders scored the highest last week as the company hit CN¥8.5b market cap following a 4.6% gain in the stock.

Let's delve deeper into each type of owner of Ningbo Fujia Industrial, beginning with the chart below.

See our latest analysis for Ningbo Fujia Industrial

What Does The Institutional Ownership Tell Us About Ningbo Fujia Industrial?

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.

Less than 5% of Ningbo Fujia Industrial is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Ningbo Fujia Industrial is not owned by hedge funds. Yuedan Wang is currently the largest shareholder, with 72% of shares outstanding. This implies that they have majority interest control of the future of the company. With 7.3% and 3.3% of the shares outstanding respectively, Shiguo Yu and Shanghai Guyunlin Enterprise Management Co., Ltd. are the second and third largest shareholders. Furthermore, CEO Yiding Lang is the owner of 2.3% of the company's shares.

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

Insider Ownership Of Ningbo Fujia Industrial

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.

It seems that insiders own more than half the Ningbo Fujia Industrial Co., Ltd. stock. This gives them a lot of power. Given it has a market cap of CN¥8.5b, that means insiders have a whopping CN¥7.0b worth of shares in their own names. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ningbo Fujia Industrial. 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

It seems that Private Companies own 4.5%, of the Ningbo Fujia Industrial 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. Case in point: We've spotted 1 warning sign for Ningbo Fujia Industrial you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.