Key Insights

• Given the large stake in the stock by institutions, Jianzhijia Pharmaceutical Chain Group's stock price might be vulnerable to their trading decisions
• A total of 4 investors have a majority stake in the company with 54% ownership
• Insider ownership in Jianzhijia Pharmaceutical Chain Group is 29%

Every investor in Jianzhijia Pharmaceutical Chain Group Co., Ltd. (SHSE:605266) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 34% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 5.8% in value last week. However, the 31% one-year return to shareholders might have softened the blow. They should, however, be mindful of further losses in the future.

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

See our latest analysis for Jianzhijia Pharmaceutical Chain Group

What Does The Institutional Ownership Tell Us About Jianzhijia Pharmaceutical Chain 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.

As you can see, institutional investors have a fair amount of stake in Jianzhijia Pharmaceutical Chain Group. 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. 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 Jianzhijia Pharmaceutical Chain Group's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Jianzhijia Pharmaceutical Chain Group. Shenzhen Changsihang Industrial Development Co., Ltd. is currently the company's largest shareholder with 20% of shares outstanding. With 18% and 10% of the shares outstanding respectively, Bo Lan and Yanping Wang are the second and third largest shareholders. Bo Lan, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On looking further, we found that 54% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Jianzhijia Pharmaceutical Chain Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our information suggests that insiders maintain a significant holding in Jianzhijia Pharmaceutical Chain Group Co., Ltd.. Insiders own CN¥1.8b worth of shares in the CN¥6.1b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 18% stake in Jianzhijia Pharmaceutical Chain 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.

Private Company Ownership

Our data indicates that Private Companies hold 20%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jianzhijia Pharmaceutical Chain Group better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Jianzhijia Pharmaceutical Chain Group .

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.