Joyware Electronics Co.,Ltd's (SZSE:300270) market cap touched CN¥2.6b last week, benefiting both individual investors who own 54% as well as institutions

Key Insights

• The considerable ownership by individual investors in Joyware ElectronicsLtd indicates that they collectively have a greater say in management and business strategy
• The top 22 shareholders own 46% of the company
• Insider ownership in Joyware ElectronicsLtd is 20%

A look at the shareholders of Joyware Electronics Co.,Ltd (SZSE:300270) can tell us which group is most powerful. The group holding the most number of shares in the company, around 54% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 15% increase in the stock price last week, individual investors profited the most, but institutions who own 24% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of Joyware ElectronicsLtd.

See our latest analysis for Joyware ElectronicsLtd

What Does The Institutional Ownership Tell Us About Joyware ElectronicsLtd?

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 Joyware ElectronicsLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Joyware ElectronicsLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Joyware ElectronicsLtd. Our data shows that Beijing Haihoutai Capital Co., Ltd. is the largest shareholder with 19% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 19% and 0.8%, of the shares outstanding, respectively.

On studying our ownership data, we found that 22 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. 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 Joyware ElectronicsLtd

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

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.

It seems insiders own a significant proportion of Joyware Electronics Co.,Ltd. It has a market capitalization of just CN¥2.6b, and insiders have CN¥519m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 54% stake in Joyware ElectronicsLtd, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Joyware ElectronicsLtd better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.