Hubei Jumpcan Pharmaceutical Co., Ltd.'s (SHSE:600566) market cap surged CN¥2.3b last week, private companies who have a lot riding on the company were rewarded

Key Insights

• The considerable ownership by private companies in Hubei Jumpcan Pharmaceutical indicates that they collectively have a greater say in management and business strategy
• A total of 2 investors have a majority stake in the company with 56% ownership
• 12% of Hubei Jumpcan Pharmaceutical is held by Institutions

A look at the shareholders of Hubei Jumpcan Pharmaceutical Co., Ltd. (SHSE:600566) can tell us which group is most powerful. With 57% stake, private companies 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.

Clearly, private companies benefitted the most after the company's market cap rose by CN¥2.3b last week.

Let's delve deeper into each type of owner of Hubei Jumpcan Pharmaceutical, beginning with the chart below.

Check out our latest analysis for Hubei Jumpcan Pharmaceutical

What Does The Institutional Ownership Tell Us About Hubei Jumpcan Pharmaceutical?

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 Hubei Jumpcan Pharmaceutical does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Hubei Jumpcan Pharmaceutical, (below). Of course, keep in mind that there are other factors to consider, too.

Hubei Jumpcan Pharmaceutical is not owned by hedge funds. The company's largest shareholder is Jiangsu Jichuan Holding Group Co., Ltd., with ownership of 45%. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 5.1% by the third-largest shareholder. Long Xiang Cao, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 56% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Hubei Jumpcan Pharmaceutical

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.

We can see that insiders own shares in Hubei Jumpcan Pharmaceutical Co., Ltd.. The insiders have a meaningful stake worth CN¥1.3b. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 25% 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.

Private Company Ownership

We can see that Private Companies own 57%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Hubei Jumpcan Pharmaceutical 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.