Retail investors invested in Jiangsu Apon Medical Technology Co., Ltd. (SZSE:300753) up 10% last week, insiders too were rewarded

Key Insights

• The considerable ownership by retail investors in Jiangsu Apon Medical Technology indicates that they collectively have a greater say in management and business strategy
• The top 6 shareholders own 50% of the company
• 42% of Jiangsu Apon Medical Technology is held by insiders

A look at the shareholders of Jiangsu Apon Medical Technology Co., Ltd. (SZSE:300753) can tell us which group is most powerful. The group holding the most number of shares in the company, around 45% 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).

Retail investors gained the most after market cap touched CN¥2.5b last week, while insiders who own 42% also benefitted.

In the chart below, we zoom in on the different ownership groups of Jiangsu Apon Medical Technology.

See our latest analysis for Jiangsu Apon Medical Technology

What Does The Institutional Ownership Tell Us About Jiangsu Apon Medical Technology?

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.

Jiangsu Apon Medical Technology 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. 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 Jiangsu Apon Medical Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Jiangsu Apon Medical Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Ningyu Wang with 29% of shares outstanding. Zhihui Zhang is the second largest shareholder owning 10% of common stock, and Beijing Zhanghong Private Equity Fund Management Co., Ltd. holds about 5.6% of the company stock.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. 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 Jiangsu Apon Medical Technology

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. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Jiangsu Apon Medical Technology Co., Ltd.. It has a market capitalization of just CN¥2.5b, and insiders have CN¥1.0b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jiangsu Apon Medical Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Jiangsu Apon Medical Technology (at least 2 which don't sit too well with us) , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

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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.