Recent 9.6% pullback would hurt Yongjin Technology Group Co., Ltd. (SHSE:603995) insiders

Key Insights

• Insiders appear to have a vested interest in Yongjin Technology Group's growth, as seen by their sizeable ownership
• The top 3 shareholders own 53% of the company
• Institutional ownership in Yongjin Technology Group is 21%

To get a sense of who is truly in control of Yongjin Technology Group Co., Ltd. (SHSE:603995), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 50% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, insiders endured the biggest losses as the stock fell by 9.6%.

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

Check out our latest analysis for Yongjin Technology Group

What Does The Institutional Ownership Tell Us About Yongjin Technology Group?

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.

Yongjin Technology Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Yongjin Technology Group, (below). Of course, keep in mind that there are other factors to consider, too.

Yongjin Technology Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Jiqun Yu with 26% of shares outstanding. Peifeng Cao is the second largest shareholder owning 22% of common stock, and E Fund Management Co., Ltd. holds about 5.7% of the company stock.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Yongjin Technology Group

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 Yongjin Technology Group Co., Ltd.. This means they can collectively make decisions for the company. That means insiders have a very meaningful CN¥3.7b stake in this CN¥7.3b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Yongjin Technology Group. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Yongjin Technology Group better, we need to consider many other factors. Be aware that Yongjin Technology Group is showing 1 warning sign in our investment analysis , you should know about...

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.