JinkoSolar Holding Co., Ltd.'s (NYSE:JKS) most bullish insider, CEO Xiande Li must be pleased with the recent 5.0% gain

Key Insights

• Insiders appear to have a vested interest in JinkoSolar Holding's growth, as seen by their sizeable ownership
• A total of 7 investors have a majority stake in the company with 52% ownership
• Institutional ownership in JinkoSolar Holding is 30%

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If you want to know who really controls JinkoSolar Holding Co., Ltd. (NYSE:JKS), 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 40% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit US$1.2b market cap following a 5.0% gain in the stock.

Let's delve deeper into each type of owner of JinkoSolar Holding, beginning with the chart below.

Check out our latest analysis for JinkoSolar Holding

What Does The Institutional Ownership Tell Us About JinkoSolar Holding?

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.

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

Hedge funds don't have many shares in JinkoSolar Holding. With a 20% stake, CEO Xiande Li is the largest shareholder. With 14% and 5.3% of the shares outstanding respectively, Kangping Chen and Xianhua Li are the second and third largest shareholders. Interestingly, the third-largest shareholder, Xianhua Li is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

We did some more digging and found that 7 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. 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 JinkoSolar Holding

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of JinkoSolar Holding Co., Ltd.. It is very interesting to see that insiders have a meaningful US$480m stake in this US$1.2b business. 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 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over JinkoSolar Holding. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with JinkoSolar Holding , and understanding them should be part of your investment process.

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.