Jiangsu Yunyong Electronics and Technology Co.,Ltd's (SHSE:688060) largest shareholder, CEO Nan Gao sees holdings value fall by 13% following recent drop

Key Insights

• Significant insider control over Jiangsu Yunyong Electronics and TechnologyLtd implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 56% ownership
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

If you want to know who really controls Jiangsu Yunyong Electronics and Technology Co.,Ltd (SHSE:688060), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 73% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by CN¥285m.

Let's delve deeper into each type of owner of Jiangsu Yunyong Electronics and TechnologyLtd, beginning with the chart below.

See our latest analysis for Jiangsu Yunyong Electronics and TechnologyLtd

What Does The Institutional Ownership Tell Us About Jiangsu Yunyong Electronics and TechnologyLtd?

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.

Institutions have a very small stake in Jiangsu Yunyong Electronics and TechnologyLtd. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Jiangsu Yunyong Electronics and TechnologyLtd. With a 34% stake, CEO Nan Gao is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 23% and 10%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Fuwei Jiao is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Jiangsu Yunyong Electronics and TechnologyLtd

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 the majority of Jiangsu Yunyong Electronics and Technology Co.,Ltd. This means they can collectively make decisions for the company. That means they own CN¥1.4b worth of shares in the CN¥1.9b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu Yunyong Electronics and TechnologyLtd better, we need to consider many other factors. For example, we've discovered 1 warning sign for Jiangsu Yunyong Electronics and TechnologyLtd that you should be aware of before investing here.

Of course this may not be the best stock to buy. So take a peek at this free 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.