JNBY Design Limited's (HKG:3306) largest shareholder, Senior Key Executive Lin Li sees holdings value fall by 5.3% following recent drop

Key Insights

• Significant insider control over JNBY Design implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 63% ownership
• Institutions own 13% of JNBY Design

If you want to know who really controls JNBY Design Limited (HKG:3306), 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 63% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, insiders endured the biggest losses as the stock fell by 5.3%.

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

See our latest analysis for JNBY Design

What Does The Institutional Ownership Tell Us About JNBY Design?

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.

We can see that JNBY Design 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 JNBY Design's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in JNBY Design. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In JNBY Design's case, its Senior Key Executive, Lin Li, is the largest shareholder, holding 32% of shares outstanding. Jian Wu is the second largest shareholder owning 30% of common stock, and Energetic Design Limited holds about 3.3% of the company stock. Interestingly, the second-largest shareholder, Jian Wu is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders. In addition, we found that Huating Wu, the CEO has 0.8% of the shares allocated to their name.

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.

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. 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 JNBY Design

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. 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 most recent data indicates that insiders own the majority of JNBY Design Limited. This means they can collectively make decisions for the company. Given it has a market cap of HK$8.4b, that means insiders have a whopping HK$5.3b worth of shares in their own names. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 20% stake in JNBY Design. 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

Our data indicates that Private Companies hold 3.3%, 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. For example, we've discovered 1 warning sign for JNBY Design that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.