Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.'s (SZSE:002223) top owners are retail investors with 36% stake, while 25% is held by private companies

Key Insights

• The considerable ownership by retail investors in Jiangsu Yuyue Medical Equipment & Supply indicates that they collectively have a greater say in management and business strategy
• A total of 6 investors have a majority stake in the company with 50% ownership
• Insider ownership in Jiangsu Yuyue Medical Equipment & Supply is 18%

A look at the shareholders of Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (SZSE:002223) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 36% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, private companies make up 25% of the company’s shareholders.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangsu Yuyue Medical Equipment & Supply.

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

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

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 Jiangsu Yuyue Medical Equipment & Supply. 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 Jiangsu Yuyue Medical Equipment & Supply's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiangsu Yuyue Medical Equipment & Supply is not owned by hedge funds. Our data shows that Jiangsu Yuyue Technology Development Co., Ltd. is the largest shareholder with 25% of shares outstanding. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 7.7% by the third-largest shareholder.

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.

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

Insider Ownership Of Jiangsu Yuyue Medical Equipment & Supply

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders maintain a significant holding in Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.. Insiders own CN¥7.2b worth of shares in the CN¥40b company. That's quite meaningful. 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

The general public-- including retail investors -- own 36% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 25%, of the Jiangsu Yuyue Medical Equipment & Supply stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu Yuyue Medical Equipment & Supply better, we need to consider many other factors. Take risks for example - Jiangsu Yuyue Medical Equipment & Supply has 2 warning signs 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.

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.