The recent 13% gain must have brightened Top Key Executive Yoong An Yang's week, Jia Yao Holdings Limited's (HKG:1626) most bullish insider

Key Insights

• Jia Yao Holdings' significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Yoong An Yang with a 70% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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If you want to know who really controls Jia Yao Holdings Limited (HKG:1626), then you'll have to look at the makeup of its share registry. With 70% 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.

Clearly, insiders benefitted the most after the company's market cap rose by HK$198m last week.

Let's delve deeper into each type of owner of Jia Yao Holdings, beginning with the chart below.

View our latest analysis for Jia Yao Holdings

What Does The Lack Of Institutional Ownership Tell Us About Jia Yao Holdings?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Jia Yao Holdings, for yourself, below.

We note that hedge funds don't have a meaningful investment in Jia Yao Holdings. Our data suggests that Yoong An Yang, who is also the company's Top Key Executive, holds the most number of shares at 70%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. Dimensional Fund Advisors LP is the second largest shareholder owning 0.1% of common stock, and American Century Investment Management Inc holds about 0.03% of the company stock.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Jia Yao Holdings

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.

Our most recent data indicates that insiders own the majority of Jia Yao Holdings Limited. This means they can collectively make decisions for the company. That means they own HK$1.2b worth of shares in the HK$1.8b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 30% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.