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 7.0% last week

Key Insights

• Zhejiang Jiemei Electronic And Technology's significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Jun Yun Fang with a 55% stake
• Institutional ownership in Zhejiang Jiemei Electronic And Technology is 12%

Every investor in Zhejiang Jiemei Electronic And Technology Co., Ltd. (SZSE:002859) should be aware of the most powerful shareholder groups. With 55% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥554m last week.

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?

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.

Zhejiang Jiemei Electronic And Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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.

Zhejiang Jiemei Electronic And Technology is not owned by hedge funds. The company's CEO Jun Yun Fang is the largest shareholder with 55% of shares outstanding. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. For context, the second largest shareholder holds about 1.6% of the shares outstanding, followed by an ownership of 1.1% by the third-largest shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

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.

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.

It seems that insiders own more than half the Zhejiang Jiemei Electronic And Technology Co., Ltd. stock. This gives them a lot of power. That means insiders have a very meaningful CN¥4.7b stake in this CN¥8.5b 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

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhejiang Jiemei Electronic And Technology. 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 Zhejiang Jiemei Electronic And Technology better, we need to consider many other factors. Be aware that Zhejiang Jiemei Electronic And Technology is showing 3 warning signs in our investment analysis , and 2 of those are a bit unpleasant...

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.