Yantai Jereh Oilfield Services Group Co., Ltd.'s (SZSE:002353) market cap increased by CN¥3.4b, insiders receive a 44% cut

Key Insights

• Insiders appear to have a vested interest in Yantai Jereh Oilfield Services Group's growth, as seen by their sizeable ownership
• 50% of the business is held by the top 6 shareholders
• Institutions own 24% of Yantai Jereh Oilfield Services Group

Every investor in Yantai Jereh Oilfield Services Group Co., Ltd. (SZSE:002353) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 44% ownership. 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¥34b market cap following a 11% gain in the stock.

Let's delve deeper into each type of owner of Yantai Jereh Oilfield Services Group, beginning with the chart below.

Check out our latest analysis for Yantai Jereh Oilfield Services Group

What Does The Institutional Ownership Tell Us About Yantai Jereh Oilfield Services Group?

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.

As you can see, institutional investors have a fair amount of stake in Yantai Jereh Oilfield Services Group. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Yantai Jereh Oilfield Services Group's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Yantai Jereh Oilfield Services Group. The company's largest shareholder is Weijie Sun, with ownership of 19%. Kunxiao Wang is the second largest shareholder owning 13% of common stock, and Zhenfeng Liu holds about 11% of the company stock. Zhenfeng Liu, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Yantai Jereh Oilfield Services Group

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.

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 a reasonable proportion of Yantai Jereh Oilfield Services Group Co., Ltd.. It has a market capitalization of just CN¥34b, and insiders have CN¥15b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Yantai Jereh Oilfield Services Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Yantai Jereh Oilfield Services Group has 1 warning sign we think 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.

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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.