Private companies among Jason Furniture (Hangzhou) Co.,Ltd.'s (SHSE:603816) largest shareholders, saw gain in holdings value after stock jumped 3.7% last week

Key Insights

• Jason Furniture (Hangzhou)Ltd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 53% of the business is held by the top 4 shareholders
• Institutional ownership in Jason Furniture (Hangzhou)Ltd is 21%

Every investor in Jason Furniture (Hangzhou) Co.,Ltd. (SHSE:603816) should be aware of the most powerful shareholder groups. With 44% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies collectively scored the highest last week as the company hit CN¥18b market cap following a 3.7% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Jason Furniture (Hangzhou)Ltd.

Check out our latest analysis for Jason Furniture (Hangzhou)Ltd

What Does The Institutional Ownership Tell Us About Jason Furniture (Hangzhou)Ltd?

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.

We can see that Jason Furniture (Hangzhou)Ltd does have institutional investors; and they hold a good portion of the company's stock. 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 Jason Furniture (Hangzhou)Ltd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Jason Furniture (Hangzhou)Ltd. Looking at our data, we can see that the largest shareholder is Ningbo Yingfeng Ruihe Investment Management Co., Ltd. with 30% of shares outstanding. Kuka Group Company Limited is the second largest shareholder owning 13% of common stock, and Jiang Sheng Gu holds about 5.1% of the company stock. Jiang Sheng Gu, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Additionally, the company's CEO Dong Lai Li directly holds 2.1% of the total shares outstanding.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Jason Furniture (Hangzhou)Ltd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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 some shares in Jason Furniture (Hangzhou) Co.,Ltd.. The insiders have a meaningful stake worth CN¥1.5b. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 21% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 5.1%, private equity firms could influence the Jason Furniture (Hangzhou)Ltd board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

Our data indicates that Private Companies hold 44%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 instance, we've identified 2 warning signs for Jason Furniture (Hangzhou)Ltd (1 can't be ignored) that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.