Individual investors in Jiangsu Sinopep-Allsino Biopharmaceutical Co., Ltd. (SHSE:688076) are its biggest bettors, and their bets paid off as stock gained 3.7% 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
• The top 13 shareholders own 51% of the company
• 16% of Jiangsu Sinopep-Allsino Biopharmaceutical is held by insiders

If you want to know who really controls Jiangsu Sinopep-Allsino Biopharmaceutical Co., Ltd. (SHSE:688076), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 33% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, individual investors benefitted the most after the company's market cap rose by CN¥456m last week.

Let's delve deeper into each type of owner of Jiangsu Sinopep-Allsino Biopharmaceutical, beginning with the chart below.

See our latest analysis for Jiangsu Sinopep-Allsino Biopharmaceutical

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

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Jiangsu Sinopep-Allsino Biopharmaceutical already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Jiangsu Sinopep-Allsino Biopharmaceutical's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiangsu Sinopep-Allsino Biopharmaceutical is not owned by hedge funds. Our data shows that Lianyungang Nuotai Investment Management Partnership Enterprise (L.P.) is the largest shareholder with 9.4% of shares outstanding. The second and third largest shareholders are Dezhong Zhao and Deyi Zhao, with an equal amount of shares to their name at 6.3%. Deyi Zhao, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Jiangsu Sinopep-Allsino Biopharmaceutical

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders maintain a significant holding in Jiangsu Sinopep-Allsino Biopharmaceutical Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥2.0b stake in this CN¥13b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 33% stake in Jiangsu Sinopep-Allsino Biopharmaceutical. 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 29%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Jiangsu Sinopep-Allsino Biopharmaceutical you should be aware of, and 1 of them is potentially serious.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.