Jiumaojiu International Holdings Limited (HKG:9922) insiders have recently purchased stock and their bets paid off last week as company hit HK$7.9b market cap

Key Insights

• Insiders appear to have a vested interest in Jiumaojiu International Holdings' growth, as seen by their sizeable ownership
• The top 4 shareholders own 53% of the company
• Recent purchases by insiders

To get a sense of who is truly in control of Jiumaojiu International Holdings Limited (HKG:9922), 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 38% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Our data shows that insiders recently bought shares in the company and they were rewarded after market cap rose HK$1.0b last week.

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

View our latest analysis for Jiumaojiu International Holdings

What Does The Institutional Ownership Tell Us About Jiumaojiu International Holdings?

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 Jiumaojiu International Holdings. 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 Jiumaojiu International Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

Jiumaojiu International Holdings is not owned by hedge funds. With a 38% stake, CEO Yihong Guan is the largest shareholder. T. Rowe Price Group, Inc. is the second largest shareholder owning 5.2% of common stock, and Invesco Ltd. holds about 5.1% of the company stock.

Our research also brought to light the fact that roughly 53% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Jiumaojiu International Holdings

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

It seems insiders own a significant proportion of Jiumaojiu International Holdings Limited. Insiders own HK$3.0b worth of shares in the HK$7.9b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jiumaojiu International Holdings. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.