Individual investors in Jiangsu Sinopep-Allsino Biopharmaceutical Co., Ltd. (SHSE:688076) are its biggest bettors, and their bets paid off as stock gained 3.6% last week

Key Insights

• Significant control over Jiangsu Sinopep-Allsino Biopharmaceutical by individual investors implies that the general public has more power to influence management and governance-related decisions
• 51% of the business is held by the top 13 shareholders
• Insiders own 16% of Jiangsu Sinopep-Allsino Biopharmaceutical

A look at the shareholders of Jiangsu Sinopep-Allsino Biopharmaceutical Co., Ltd. (SHSE:688076) can tell us which group is most powerful. The group holding the most number of shares in the company, around 32% to be precise, is individual investors. 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, individual investors collectively scored the highest last week as the company hit CN¥12b market cap following a 3.6% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Jiangsu Sinopep-Allsino Biopharmaceutical.

Check out our latest analysis for Jiangsu Sinopep-Allsino Biopharmaceutical

What Does The Institutional Ownership Tell Us About Jiangsu Sinopep-Allsino Biopharmaceutical?

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.

Jiangsu Sinopep-Allsino Biopharmaceutical already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Jiangsu Sinopep-Allsino Biopharmaceutical's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Jiangsu Sinopep-Allsino Biopharmaceutical. Our data shows that Lianyungang Nuotai Investment Management Partnership Enterprise (L.P.) is the largest shareholder with 9.1% of shares outstanding. The second and third largest shareholders are Deyi Zhao and Dezhong Zhao, with an equal amount of shares to their name at 6.1%. Dezhong Zhao, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 13 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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 Jiangsu Sinopep-Allsino Biopharmaceutical

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own a reasonable proportion of Jiangsu Sinopep-Allsino Biopharmaceutical Co., Ltd.. Insiders own CN¥1.9b worth of shares in the CN¥12b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. 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.

Private Company Ownership

It seems that Private Companies own 28%, of the Jiangsu Sinopep-Allsino Biopharmaceutical stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Jiangsu Sinopep-Allsino Biopharmaceutical (1 is concerning) that you should be aware of.

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.