Beijing Andawell Science & Technology Co., Ltd. (SZSE:300719) CEO Zian Zhao's holdings dropped 16% in value as a result of the recent pullback

Key Insights

• Beijing Andawell Science & Technology's significant insider ownership suggests inherent interests in company's expansion
• The top 7 shareholders own 50% of the company
• Institutional ownership in Beijing Andawell Science & Technology is 14%

If you want to know who really controls Beijing Andawell Science & Technology Co., Ltd. (SZSE:300719), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 45% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by CN¥903m.

In the chart below, we zoom in on the different ownership groups of Beijing Andawell Science & Technology.

Check out our latest analysis for Beijing Andawell Science & Technology

What Does The Institutional Ownership Tell Us About Beijing Andawell Science & Technology?

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.

Beijing Andawell Science & Technology 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 Beijing Andawell Science & Technology's earnings history below. Of course, the future is what really matters.

Beijing Andawell Science & Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Zian Zhao with 35% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 4.6% and 3.4%, of the shares outstanding, respectively.

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.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Beijing Andawell Science & Technology

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.

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 information suggests that insiders maintain a significant holding in Beijing Andawell Science & Technology Co., Ltd.. Insiders own CN¥2.2b worth of shares in the CN¥4.8b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 41% stake in the company, and hence can't easily be ignored. 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:

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. Take risks for example - Beijing Andawell Science & Technology has 4 warning signs (and 3 which are significant) we think you should know about.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.