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Insiders Are the Top Stockholders in Jiangshan Oupai Door Industry Co., Ltd (SHSE:603208), and the Recent 8.8% Drop Might Have Disappointed Them

Simply Wall St ·  Oct 10, 2023 18:05

Key Insights

  • Jiangshan Oupai Door Industry's significant insider ownership suggests inherent interests in company's expansion
  • The top 2 shareholders own 52% of the company
  • Institutional ownership in Jiangshan Oupai Door Industry is 17%

To get a sense of who is truly in control of Jiangshan Oupai Door Industry Co., Ltd (SHSE:603208), it is important to understand the ownership structure of the business. With 66% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, insiders endured the biggest losses as the stock fell by 8.8%.

Let's delve deeper into each type of owner of Jiangshan Oupai Door Industry, beginning with the chart below.

View our latest analysis for Jiangshan Oupai Door Industry

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SHSE:603208 Ownership Breakdown October 10th 2023

What Does The Institutional Ownership Tell Us About Jiangshan Oupai Door Industry?

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.

Jiangshan Oupai Door Industry already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Jiangshan Oupai Door Industry's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SHSE:603208 Earnings and Revenue Growth October 10th 2023

Jiangshan Oupai Door Industry is not owned by hedge funds. Our data shows that Shui Gen Wu is the largest shareholder with 29% of shares outstanding. For context, the second largest shareholder holds about 23% of the shares outstanding, followed by an ownership of 10.0% by the third-largest shareholder. Note that the second and third-largest shareholders are also Chief Executive Officer and Member of the Board of Directors, respectively, meaning that the company's top shareholders are insiders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Jiangshan Oupai Door Industry

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.

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 Jiangshan Oupai Door Industry Co., Ltd stock. This gives them a lot of power. Given it has a market cap of CN¥5.7b, that means they have CN¥3.7b worth of shares. 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

With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jiangshan Oupai Door Industry. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangshan Oupai Door Industry better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Jiangshan Oupai Door Industry .

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.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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