Owning 45% in Jiangsu Yoke Technology Co., Ltd. (SZSE:002409) means that insiders are heavily invested in the company's future

Key Insights

• Significant insider control over Jiangsu Yoke Technology implies vested interests in company growth
• The top 7 shareholders own 51% of the company
• 20% of Jiangsu Yoke Technology is held by Institutions

To get a sense of who is truly in control of Jiangsu Yoke Technology Co., Ltd. (SZSE:002409), it is important to understand the ownership structure of the business. With 45% stake, individual insiders 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.

So it follows, every decision made by insiders of Jiangsu Yoke Technology regarding the company's future would be crucial to them.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangsu Yoke Technology.

Check out our latest analysis for Jiangsu Yoke Technology

What Does The Institutional Ownership Tell Us About Jiangsu Yoke Technology?

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.

We can see that Jiangsu Yoke Technology does have institutional investors; and they hold a good portion of the company's stock. 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 Yoke Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Jiangsu Yoke Technology. The company's CEO Qi Shen is the largest shareholder with 22% of shares outstanding. For context, the second largest shareholder holds about 20% of the shares outstanding, followed by an ownership of 2.6% by the third-largest shareholder. Interestingly, the second-largest shareholder, Fu Shen is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

We also observed that the top 7 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 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 Yoke Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 maintain a significant holding in Jiangsu Yoke Technology Co., Ltd.. Insiders own CN¥14b worth of shares in the CN¥30b company. That's quite meaningful. 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-- including retail investors -- own 34% stake in the company, and hence can't easily be ignored. 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Jiangsu Yoke Technology (of which 1 shouldn't be ignored!) you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.