Jiangxi Zhengbang Technology Co.Ltd.'s (SZSE:002157) stock price dropped 3.9% last week; individual investors would not be happy
Key Insights
- Jiangxi Zhengbang TechnologyLtd's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- The top 13 shareholders own 50% of the company
- 17% of Jiangxi Zhengbang TechnologyLtd is held by Institutions
If you want to know who really controls Jiangxi Zhengbang Technology Co.Ltd. (SZSE:002157), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 43% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And last week, individual investors endured the biggest losses as the stock fell by 3.9%.
Let's take a closer look to see what the different types of shareholders can tell us about Jiangxi Zhengbang TechnologyLtd.
Check out our latest analysis for Jiangxi Zhengbang TechnologyLtd
What Does The Institutional Ownership Tell Us About Jiangxi Zhengbang TechnologyLtd?
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.
Jiangxi Zhengbang TechnologyLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Jiangxi Zhengbang TechnologyLtd's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Jiangxi Zhengbang TechnologyLtd. Jiangxi Shuangbaotai Agriculture Co., Ltd. is currently the largest shareholder, with 15% of shares outstanding. Zhengbang Group Corporation Limited is the second largest shareholder owning 8.0% of common stock, and Jiangxi Yonglian Agriculture Holding Co., Ltd. holds about 6.0% of the company stock.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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 Jiangxi Zhengbang TechnologyLtd
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.
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.
We can report that insiders do own shares in Jiangxi Zhengbang Technology Co.Ltd.. The insiders have a meaningful stake worth CN¥484m. Most would see this as a real positive. It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 43% stake in Jiangxi Zhengbang TechnologyLtd. 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.
Private Company Ownership
It seems that Private Companies own 38%, of the Jiangxi Zhengbang TechnologyLtd stock. 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:
It's always worth thinking about the different groups who own shares in a company. But to understand Jiangxi Zhengbang TechnologyLtd better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Jiangxi Zhengbang TechnologyLtd you should know about.
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.
About SZSE:002157
Jiangxi Zhengbang TechnologyLtd
Operates in the agricultural industry in China.
Adequate balance sheet with acceptable track record.