Private companies are Beijing Zhongkehaixun Digital S&T Co., Ltd.'s (SZSE:300810) biggest owners and were hit after market cap dropped CN¥315m

Key Insights

• Significant control over Beijing Zhongkehaixun Digital S&T by private companies implies that the general public has more power to influence management and governance-related decisions
• A total of 5 investors have a majority stake in the company with 51% ownership
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

If you want to know who really controls Beijing Zhongkehaixun Digital S&T Co., Ltd. (SZSE:300810), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 45% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, private companies endured the biggest losses as the stock fell by 12%.

In the chart below, we zoom in on the different ownership groups of Beijing Zhongkehaixun Digital S&T.

See our latest analysis for Beijing Zhongkehaixun Digital S&T

What Does The Institutional Ownership Tell Us About Beijing Zhongkehaixun Digital S&T?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Beijing Zhongkehaixun Digital S&T. 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. 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 Beijing Zhongkehaixun Digital S&T, (below). Of course, keep in mind that there are other factors to consider, too.

Beijing Zhongkehaixun Digital S&T is not owned by hedge funds. Ningbo Meishan Bonded Port Area Zhongke Haixun Technology Investment Partnership Enterprise (L.P.) is currently the company's largest shareholder with 30% of shares outstanding. With 15% and 4.6% of the shares outstanding respectively, Ningbo Meishan Free Trade Zone Zhihai Acoustic Enterprise Management Partnership (L.P) and Huizhi Cai are the second and third largest shareholders. Huizhi Cai, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. 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 Zhongkehaixun Digital S&T

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

Shareholders would probably be interested to learn that insiders own shares in Beijing Zhongkehaixun Digital S&T Co., Ltd.. In their own names, insiders own CN¥117m worth of stock in the CN¥2.3b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 43% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 45%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Beijing Zhongkehaixun Digital S&T better, we need to consider many other factors. Take risks for example - Beijing Zhongkehaixun Digital S&T has 2 warning signs (and 1 which is significant) we think you should know about.

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.