Key Insights
- Joy Spreader Group's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- The top 11 shareholders own 45% of the company
- 37% of Joy Spreader Group is held by insiders
Every investor in Joy Spreader Group Inc. (HKG:6988) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 55% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).
Following a 98% increase in the stock price last week, retail investors profited the most, but insiders who own 37% stock also stood to gain from the increase.
In the chart below, we zoom in on the different ownership groups of Joy Spreader Group.
See our latest analysis for Joy Spreader Group
What Does The Institutional Ownership Tell Us About Joy Spreader 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 Joy Spreader 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 Joy Spreader 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 Joy Spreader Group. With a 32% stake, CEO Zinan Zhu is the largest shareholder. In comparison, the second and third largest shareholders hold about 4.8% and 4.4% of the stock.
On studying our ownership data, we found that 11 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Joy Spreader 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of Joy Spreader Group Inc.. Insiders have a HK$294m stake in this HK$806m business. 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 -- including retail investors -- own 55% of Joy Spreader Group. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Joy Spreader Group better, we need to consider many other factors. For instance, we've identified 2 warning signs for Joy Spreader Group (1 makes us a bit uncomfortable) that you should be aware of.
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.