Insiders are the top stockholders in Yangzhou Jinquan Travelling Goods Co., Ltd. (SHSE:603307), and the recent 10% drop might have disappointed them

Key Insights

• Yangzhou Jinquan Travelling Goods' significant insider ownership suggests inherent interests in company's expansion
• A total of 2 investors have a majority stake in the company with 75% ownership
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Yangzhou Jinquan Travelling Goods Co., Ltd. (SHSE:603307) can tell us which group is most powerful. The group holding the most number of shares in the company, around 75% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 10% decline in share price, insiders suffered the most losses.

Let's delve deeper into each type of owner of Yangzhou Jinquan Travelling Goods, beginning with the chart below.

Check out our latest analysis for Yangzhou Jinquan Travelling Goods

What Does The Institutional Ownership Tell Us About Yangzhou Jinquan Travelling Goods?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Since institutions own only a small portion of Yangzhou Jinquan Travelling Goods, 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 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.

We note that hedge funds don't have a meaningful investment in Yangzhou Jinquan Travelling Goods. Mingwen Lin is currently the largest shareholder, with 41% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 33% and 0.4%, of the shares outstanding, respectively. Hongqing Li, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Yangzhou Jinquan Travelling Goods

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that insiders own more than half of Yangzhou Jinquan Travelling Goods Co., Ltd.. This gives them effective control of the company. That means they own CN¥1.6b worth of shares in the CN¥2.2b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Yangzhou Jinquan Travelling Goods. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Yangzhou Jinquan Travelling Goods better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Yangzhou Jinquan Travelling Goods , and understanding them should be part of your investment process.

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.