Zhejiang Jiemei Electronic And Technology Co., Ltd.'s (SZSE:002859) most bullish insider is CEO Jun Yun Fang, and their holdings value went up by 9.4% last week

Key Insights

• Zhejiang Jiemei Electronic And Technology's significant insider ownership suggests inherent interests in company's expansion
• 55% of the company is held by a single shareholder (Jun Yun Fang)
• Institutional ownership in Zhejiang Jiemei Electronic And Technology is 15%

Every investor in Zhejiang Jiemei Electronic And Technology Co., Ltd. (SZSE:002859) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit CN¥8.4b market cap following a 9.4% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Zhejiang Jiemei Electronic And Technology.

See our latest analysis for Zhejiang Jiemei Electronic And Technology

What Does The Institutional Ownership Tell Us About Zhejiang Jiemei Electronic And Technology?

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.

We can see that Zhejiang Jiemei Electronic And 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. 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 Zhejiang Jiemei Electronic And Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Zhejiang Jiemei Electronic And Technology. With a 55% stake, CEO Jun Yun Fang is the largest shareholder. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. Anji Baishun Investment Partnership Enterprise (Limited Partnership) is the second largest shareholder owning 1.6% of common stock, and HuaAn Fund Management Company Ltd. holds about 1.4% of the company stock.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Zhejiang Jiemei Electronic And Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 the majority of Zhejiang Jiemei Electronic And Technology Co., Ltd.. This means they can collectively make decisions for the company. That means insiders have a very meaningful CN¥4.6b stake in this CN¥8.4b business. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 27% 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:

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

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com