Institutions along with individual investors who hold considerable shares inHunan Jingfeng Pharmaceutical Co.,Ltd. (SZSE:000908) come under pressure; lose 15% of holdings value

Key Insights

• Hunan Jingfeng PharmaceuticalLtd's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 18 shareholders own 47% of the company
• Insider ownership in Hunan Jingfeng PharmaceuticalLtd is 15%

A look at the shareholders of Hunan Jingfeng Pharmaceutical Co.,Ltd. (SZSE:000908) can tell us which group is most powerful. With 53% stake, individual investors 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).

While institutions, who own 17% shares weren’t spared from last week’s CN¥238m market cap drop, individual investors as a group suffered the maximum losses

Let's take a closer look to see what the different types of shareholders can tell us about Hunan Jingfeng PharmaceuticalLtd.

View our latest analysis for Hunan Jingfeng PharmaceuticalLtd

What Does The Institutional Ownership Tell Us About Hunan Jingfeng PharmaceuticalLtd?

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 Hunan Jingfeng PharmaceuticalLtd 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. 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 Hunan Jingfeng PharmaceuticalLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Hunan Jingfeng PharmaceuticalLtd. With a 14% stake, CEO Xiang Wu Ye is the largest shareholder. The second and third largest shareholders are China Great Wall Asset Management Corporation, Asset Management Arm and China Great Wall Asset Management Co., Ltd., with an equal amount of shares to their name at 13%.

On studying our ownership data, we found that 18 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Hunan Jingfeng PharmaceuticalLtd

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.

It seems insiders own a significant proportion of Hunan Jingfeng Pharmaceutical Co.,Ltd.. It has a market capitalization of just CN¥1.4b, and insiders have CN¥199m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 53% stake in Hunan Jingfeng PharmaceuticalLtd, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

It seems that Private Companies own 13%, of the Hunan Jingfeng PharmaceuticalLtd stock. 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. Case in point: We've spotted 2 warning signs for Hunan Jingfeng PharmaceuticalLtd you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.