YingTong Telecommunication Co.,Ltd.'s (SZSE:002861) market cap dropped CN¥358m last week; Individual investors bore the brunt

Key Insights

• The considerable ownership by individual investors in YingTong TelecommunicationLtd indicates that they collectively have a greater say in management and business strategy
• 48% of the business is held by the top 18 shareholders
• 42% of YingTong TelecommunicationLtd is held by insiders

A look at the shareholders of YingTong Telecommunication Co.,Ltd. (SZSE:002861) can tell us which group is most powerful. The group holding the most number of shares in the company, around 52% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 10% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 42% stock also took a hit.

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

Check out our latest analysis for YingTong TelecommunicationLtd

What Does The Institutional Ownership Tell Us About YingTong TelecommunicationLtd?

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.

Institutions have a very small stake in YingTong TelecommunicationLtd. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

We note that hedge funds don't have a meaningful investment in YingTong TelecommunicationLtd. Looking at our data, we can see that the largest shareholder is the CEO Hui Huang with 24% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.5% and 5.2% of the stock.

A deeper look at our ownership data shows that the top 18 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of YingTong TelecommunicationLtd

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.

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 YingTong Telecommunication Co.,Ltd.. It has a market capitalization of just CN¥3.1b, and insiders have CN¥1.3b worth of shares in their own names. 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, who are usually individual investors, hold a substantial 52% stake in YingTong TelecommunicationLtd, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - YingTong TelecommunicationLtd has 4 warning signs (and 3 which are significant) we think you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.