Jinzai Food Group Co.,Ltd. (SZSE:003000) CEO Jingsong Zhou's holdings dropped 6.7% in value as a result of the recent pullback

Key Insights

• Insiders appear to have a vested interest in Jinzai Food GroupLtd's growth, as seen by their sizeable ownership
• A total of 2 investors have a majority stake in the company with 51% ownership
• Institutions own 15% of Jinzai Food GroupLtd

A look at the shareholders of Jinzai Food Group Co.,Ltd. (SZSE:003000) can tell us which group is most powerful. The group holding the most number of shares in the company, around 53% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 6.7% decline in share price, insiders suffered the most losses.

Let's delve deeper into each type of owner of Jinzai Food GroupLtd, beginning with the chart below.

View our latest analysis for Jinzai Food GroupLtd

What Does The Institutional Ownership Tell Us About Jinzai Food GroupLtd?

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 Jinzai Food GroupLtd. 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. 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 Jinzai Food GroupLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Jinzai Food GroupLtd is not owned by hedge funds. With a 47% stake, CEO Jingsong Zhou is the largest shareholder. Teyuan Liu is the second largest shareholder owning 4.4% of common stock, and Bank of Communications Schroder Fund Management Co., Ltd. holds about 3.2% of the company stock. Interestingly, the second-largest shareholder, Teyuan Liu is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.

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

Insider Ownership Of Jinzai Food GroupLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 information suggests that insiders own more than half of Jinzai Food Group Co.,Ltd.. This gives them effective control of the company. Given it has a market cap of CN¥5.1b, that means they have CN¥2.7b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jinzai Food GroupLtd. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Jinzai Food GroupLtd .

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.