Key Insights

• Nanjing OLO Home FurnishingLtd's significant insider ownership suggests inherent interests in company's expansion
• Yantimiao Nina owns 64% of the company
• 10% of Nanjing OLO Home FurnishingLtd is held by Institutions

Every investor in Nanjing OLO Home Furnishing Co.,Ltd (SHSE:603326) should be aware of the most powerful shareholder groups. With 64% stake, individual insiders possess the maximum shares in the company. 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 were the biggest beneficiaries of last week's 10% gain.

Let's delve deeper into each type of owner of Nanjing OLO Home FurnishingLtd, beginning with the chart below.

Check out our latest analysis for Nanjing OLO Home FurnishingLtd

What Does The Institutional Ownership Tell Us About Nanjing OLO Home FurnishingLtd?

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.

Nanjing OLO Home FurnishingLtd 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 Nanjing OLO Home FurnishingLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Nanjing OLO Home FurnishingLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Yantimiao Nina with 64% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 8.6% and 3.6% of the shares outstanding respectively, Zhong Ou Fund Management Co., Ltd and Nanjing Ruiqi Investment Management Co., Ltd. are the second and third largest shareholders.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Nanjing OLO Home FurnishingLtd

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

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 that insiders own more than half the Nanjing OLO Home Furnishing Co.,Ltd stock. This gives them a lot of power. That means they own CN¥2.8b worth of shares in the CN¥4.4b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in Nanjing OLO Home FurnishingLtd. 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.

Private Company Ownership

It seems that Private Companies own 5.2%, of the Nanjing OLO Home FurnishingLtd stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with Nanjing OLO Home FurnishingLtd (including 1 which can't be ignored) .

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.