Key Insights

• Significant insider control over JinkoSolar Holding implies vested interests in company growth

• A total of 7 investors have a majority stake in the company with 50% ownership

• Institutions own 29% of JinkoSolar Holding

A look at the shareholders of JinkoSolar Holding Co., Ltd. (NYSE:JKS) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 37% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 18% gain.

Let's delve deeper into each type of owner of JinkoSolar Holding, beginning with the chart below.

Check out our latest analysis for JinkoSolar Holding

What Does The Institutional Ownership Tell Us About JinkoSolar Holding?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

JinkoSolar Holding 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 JinkoSolar Holding's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in JinkoSolar Holding. The company's CEO Xiande Li is the largest shareholder with 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 14% and 4.8% of the stock.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of JinkoSolar Holding

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of JinkoSolar Holding Co., Ltd.. It has a market capitalization of just US$1.2b, and insiders have US$462m worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 33% stake in JinkoSolar Holding. 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 JinkoSolar Holding better, we need to consider many other factors. For instance, we've identified 5 warning signs for JinkoSolar Holding that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.