JD last week's 6.3% decline must have disappointed public companies

YTGIRL
2022-10-11

If you want to know who really controls JD Health International Inc. ($JD.com(JD)$ ), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 68% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Let's take a closer look to see what the different types of shareholders can tell us about JD Health International.

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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.

We can see that JD Health International does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of JD Health International, (below). Of course, keep in mind that there are other factors to consider, too.

JD Health International is not owned by hedge funds. JD.com, Inc. is currently the largest shareholder, with 68% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. The second and third largest shareholders are Krane Funds Advisors, LLC and BlackRock, Inc., with an equal amount of shares to their name at 1.4%.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 JD Health International

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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