Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.'s (SZSE:002223) market cap surged CN¥2.8b last week, retail investors who have a lot riding on the company were rewarded

Key Insights

• Jiangsu Yuyue Medical Equipment & Supply's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 7 investors have a majority stake in the company with 52% ownership
• Insiders own 18% of Jiangsu Yuyue Medical Equipment & Supply

If you want to know who really controls Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (SZSE:002223), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 33% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, retail investors benefitted the most after the company's market cap rose by CN¥2.8b last week.

Let's delve deeper into each type of owner of Jiangsu Yuyue Medical Equipment & Supply, beginning with the chart below.

Check out our latest analysis for Jiangsu Yuyue Medical Equipment & Supply

What Does The Institutional Ownership Tell Us About Jiangsu Yuyue Medical Equipment & Supply?

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.

Jiangsu Yuyue Medical Equipment & Supply 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 Jiangsu Yuyue Medical Equipment & Supply's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Jiangsu Yuyue Medical Equipment & Supply. Our data shows that Jiangsu Yuyue Technology Development Co., Ltd. is the largest shareholder with 25% of shares outstanding. In comparison, the second and third largest shareholders hold about 10% and 7.7% of the stock.

We did some more digging and found that 7 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Jiangsu Yuyue Medical Equipment & Supply

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own a reasonable proportion of Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.. It has a market capitalization of just CN¥38b, and insiders have CN¥6.9b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 33% stake in Jiangsu Yuyue Medical Equipment & Supply. 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 25%, 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 Jiangsu Yuyue Medical Equipment & Supply that you should be aware of before investing here.

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.