Individual investors are Jiangsu Lopal Tech. Co., Ltd.'s (SHSE:603906) biggest owners and were hit after market cap dropped CN¥367m

Key Insights

• The considerable ownership by individual investors in Jiangsu Lopal Tech indicates that they collectively have a greater say in management and business strategy
• The top 11 shareholders own 50% of the company
• 42% of Jiangsu Lopal Tech is held by insiders

If you want to know who really controls Jiangsu Lopal Tech. Co., Ltd. (SHSE:603906), then you'll have to look at the makeup of its share registry. With 46% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 6.8% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 42% stock also took a hit.

Let's delve deeper into each type of owner of Jiangsu Lopal Tech, beginning with the chart below.

View our latest analysis for Jiangsu Lopal Tech

What Does The Institutional Ownership Tell Us About Jiangsu Lopal Tech?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Jiangsu Lopal Tech. 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. 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 Lopal Tech's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiangsu Lopal Tech is not owned by hedge funds. Jun Feng Shi is currently the company's largest shareholder with 38% of shares outstanding. With 4.2% and 1.3% of the shares outstanding respectively, Xiang Zhu and Caitong Securities Asset Management Co.,Ltd are the second and third largest shareholders.

After doing some more digging, we found that the top 11 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Jiangsu Lopal Tech

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Jiangsu Lopal Tech. Co., Ltd.. It has a market capitalization of just CN¥5.1b, and insiders have CN¥2.1b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. 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 46% stake in Jiangsu Lopal Tech. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu Lopal Tech better, we need to consider many other factors. Be aware that Jiangsu Lopal Tech is showing 1 warning sign in our investment analysis , you should know about...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.