Retail investors among Jiangxi Zhengbang Technology Co.Ltd.'s (SZSE:002157) largest shareholders, saw gain in holdings value after stock jumped 4.3% last week

Key Insights

• The considerable ownership by retail investors in Jiangxi Zhengbang TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• The top 13 shareholders own 50% of the company
• Institutions own 19% of Jiangxi Zhengbang TechnologyLtd

Every investor in Jiangxi Zhengbang Technology Co.Ltd. (SZSE:002157) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 40% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, retail investors collectively scored the highest last week as the company hit CN¥27b market cap following a 4.3% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangxi Zhengbang TechnologyLtd.

See 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.

We can see that Jiangxi Zhengbang TechnologyLtd does have institutional investors; and they hold a good portion of the company's stock. 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.

Hedge funds don't have many shares in Jiangxi Zhengbang TechnologyLtd. Our data shows that Jiangxi Shuangbaotai Agriculture Co., Ltd. is 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 6.1% of the company stock.

After doing some more digging, we found that the top 13 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

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. 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.

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 see that insiders own shares in Jiangxi Zhengbang Technology Co.Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥513m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jiangxi Zhengbang TechnologyLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 38%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the 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. For example, we've discovered 1 warning sign for Jiangxi Zhengbang TechnologyLtd that you should be aware of before investing here.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.