Insiders were the biggest winners as Beijing YJK Building Software Co.,Ltd.'s (SZSE:300935) market cap grew by CN¥163m last week

Key Insights

• Insiders appear to have a vested interest in Beijing YJK Building SoftwareLtd's growth, as seen by their sizeable ownership
• A total of 6 investors have a majority stake in the company with 51% ownership
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Beijing YJK Building Software Co.,Ltd. (SZSE:300935) should be aware of the most powerful shareholder groups. With 52% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit CN¥1.5b market cap following a 13% gain in the stock.

Let's delve deeper into each type of owner of Beijing YJK Building SoftwareLtd, beginning with the chart below.

Check out our latest analysis for Beijing YJK Building SoftwareLtd

What Does The Institutional Ownership Tell Us About Beijing YJK Building SoftwareLtd?

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.

Beijing YJK Building SoftwareLtd 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 Beijing YJK Building SoftwareLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Beijing YJK Building SoftwareLtd is not owned by hedge funds. The company's largest shareholder is Dailin Chen, with ownership of 17%. With 15% and 6.5% of the shares outstanding respectively, Jianyun Zhang and Weijiao Ren are the second and third largest shareholders. Weijiao Ren, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

We did some more digging and found that 6 of the top shareholders account for roughly 51% 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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Beijing YJK Building SoftwareLtd

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that insiders own more than half of Beijing YJK Building Software Co.,Ltd.. This gives them effective control of the company. So they have a CN¥757m stake in this CN¥1.5b 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

The general public, who are usually individual investors, hold a 43% stake in Beijing YJK Building SoftwareLtd. 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 1 warning sign with Beijing YJK Building SoftwareLtd , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.