Key Insights

• The considerable ownership by private companies in Zhejiang JIULI Hi-tech MetalsLtd indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 4 shareholders
• Institutional ownership in Zhejiang JIULI Hi-tech MetalsLtd is 30%

A look at the shareholders of Zhejiang JIULI Hi-tech Metals Co.,Ltd (SZSE:002318) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 36% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While private companies were the group that reaped the most benefits after last week's 9.8% price gain, institutions also received a 30% cut.

Let's delve deeper into each type of owner of Zhejiang JIULI Hi-tech MetalsLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Zhejiang JIULI Hi-tech MetalsLtd?

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.

Zhejiang JIULI Hi-tech MetalsLtd 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. 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 Zhejiang JIULI Hi-tech MetalsLtd's earnings history below. Of course, the future is what really matters.

Zhejiang JIULI Hi-tech MetalsLtd is not owned by hedge funds. Our data shows that Jiuli Group Co., Ltd. is the largest shareholder with 36% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.9% and 5.2% of the stock.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Zhejiang JIULI Hi-tech MetalsLtd

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.

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.

We can report that insiders do own shares in Zhejiang JIULI Hi-tech Metals Co.,Ltd. The insiders have a meaningful stake worth CN¥741m. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 23% stake in Zhejiang JIULI Hi-tech MetalsLtd. 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 36%, of the Zhejiang JIULI Hi-tech MetalsLtd stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Zhejiang JIULI Hi-tech MetalsLtd better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Zhejiang JIULI Hi-tech MetalsLtd you should be aware of, and 1 of them doesn't sit too well with us.

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.