Sichuan Jiuyuan Yinhai Software.Co.,Ltd's (SZSE:002777) market cap surged CN¥380m last week, individual investors who have a lot riding on the company were rewarded

Key Insights

• Significant control over Sichuan Jiuyuan Yinhai Software.Co.Ltd by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 14 investors have a majority stake in the company with 50% ownership
• 11% of Sichuan Jiuyuan Yinhai Software.Co.Ltd is held by Institutions

To get a sense of who is truly in control of Sichuan Jiuyuan Yinhai Software.Co.,Ltd (SZSE:002777), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 47% ownership. 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¥380m last week.

In the chart below, we zoom in on the different ownership groups of Sichuan Jiuyuan Yinhai Software.Co.Ltd.

View our latest analysis for Sichuan Jiuyuan Yinhai Software.Co.Ltd

What Does The Institutional Ownership Tell Us About Sichuan Jiuyuan Yinhai Software.Co.Ltd?

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.

As you can see, institutional investors have a fair amount of stake in Sichuan Jiuyuan Yinhai Software.Co.Ltd. 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. 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 Sichuan Jiuyuan Yinhai Software.Co.Ltd, (below). Of course, keep in mind that there are other factors to consider, too.

Sichuan Jiuyuan Yinhai Software.Co.Ltd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Sichuan Forever Holding Co., Ltd. with 26% of shares outstanding. For context, the second largest shareholder holds about 12% of the shares outstanding, followed by an ownership of 2.3% by the third-largest shareholder. In addition, we found that Chun Hua Lian, the CEO has 0.5% of the shares allocated to their name.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 14 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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Sichuan Jiuyuan Yinhai Software.Co.Ltd

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.

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 most recent data indicates that insiders own some shares in Sichuan Jiuyuan Yinhai Software.Co.,Ltd. In their own names, insiders own CN¥191m worth of stock in the CN¥6.7b company. This shows at least some alignment. 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 47% stake in Sichuan Jiuyuan Yinhai Software.Co.Ltd. 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

Our data indicates that Private Companies hold 38%, of the company's shares. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Sichuan Jiuyuan Yinhai Software.Co.Ltd , and understanding them should be part of your investment process.

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.