Private companies among Ningbo Joy Intelligent Logistics Technology Co.,Ltd.'s (SZSE:301198) largest shareholders, saw gain in holdings value after stock jumped 14% last week

Key Insights

• The considerable ownership by private companies in Ningbo Joy Intelligent Logistics TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• 52% of the business is held by the top 5 shareholders
• Insiders own 14% of Ningbo Joy Intelligent Logistics TechnologyLtd

Every investor in Ningbo Joy Intelligent Logistics Technology Co.,Ltd. (SZSE:301198) should be aware of the most powerful shareholder groups. With 39% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private companies collectively scored the highest last week as the company hit CN¥1.5b market cap following a 14% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Ningbo Joy Intelligent Logistics TechnologyLtd.

Check out our latest analysis for Ningbo Joy Intelligent Logistics TechnologyLtd

What Does The Institutional Ownership Tell Us About Ningbo Joy Intelligent Logistics TechnologyLtd?

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.

As you can see, institutional investors have a fair amount of stake in Ningbo Joy Intelligent Logistics TechnologyLtd. 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 Ningbo Joy Intelligent Logistics TechnologyLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Ningbo Joy Intelligent Logistics TechnologyLtd. Our data shows that Cixi Tiance Holdings Co., Ltd. is the largest shareholder with 29% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.3% and 7.2% of the stock. Zhiqiang Luo, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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

Insider Ownership Of Ningbo Joy Intelligent Logistics TechnologyLtd

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Ningbo Joy Intelligent Logistics Technology Co.,Ltd.. It has a market capitalization of just CN¥1.5b, and insiders have CN¥198m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 39%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. Take risks for example - Ningbo Joy Intelligent Logistics TechnologyLtd has 4 warning signs (and 3 which are significant) we think 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.