JNBY Design Limited's (HKG:3306) most bullish insider, Senior Key Executive Lin Li must be pleased with the recent 6.1% gain

Key Insights

• Insiders appear to have a vested interest in JNBY Design's growth, as seen by their sizeable ownership
• A total of 2 investors have a majority stake in the company with 63% ownership
• Institutional ownership in JNBY Design is 10%

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To get a sense of who is truly in control of JNBY Design Limited (HKG:3306), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 64% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by HK$610m last week.

In the chart below, we zoom in on the different ownership groups of JNBY Design.

View our latest analysis for JNBY Design

What Does The Institutional Ownership Tell Us About JNBY Design?

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.

JNBY Design already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 JNBY Design, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in JNBY Design. From our data, we infer that the largest shareholder is Lin Li (who also holds the title of Senior Key Executive) with 32% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. With 30% and 1.6% of the shares outstanding respectively, Jian Wu and The Vanguard Group, Inc. are the second and third largest shareholders. 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 1.2% of the shares allocated to their name.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 63% stake.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of JNBY Design

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.

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 JNBY Design Limited. This means they can collectively make decisions for the company. Given it has a market cap of HK$11b, that means insiders have a whopping HK$6.8b worth of shares in their own names. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over JNBY Design. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for JNBY Design you should be aware of.

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.