Individual investors in Beijing Originwater Technology Co., Ltd. (SZSE:300070) are its biggest bettors, and their bets paid off as stock gained 5.8% last week

Key Insights

• The considerable ownership by individual investors in Beijing Originwater Technology indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 8 shareholders
• 13% of Beijing Originwater Technology is held by insiders

To get a sense of who is truly in control of Beijing Originwater Technology Co., Ltd. (SZSE:300070), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 46% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, individual investors collectively scored the highest last week as the company hit CN¥18b market cap following a 5.8% gain in the stock.

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

Check out our latest analysis for Beijing Originwater Technology

What Does The Institutional Ownership Tell Us About Beijing Originwater 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.

We can see that Beijing Originwater Technology does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Originwater Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Beijing Originwater Technology is not owned by hedge funds. China Communications Construction Group (Ltd.) is currently the largest shareholder, with 33% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.6% and 3.8% of the stock. Jianping Wen, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Beijing Originwater Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our most recent data indicates that insiders own a reasonable proportion of Beijing Originwater Technology Co., Ltd.. It has a market capitalization of just CN¥18b, and insiders have CN¥2.3b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 46% stake in Beijing Originwater Technology. 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.

Private Company Ownership

It seems that Private Companies own 33%, of the Beijing Originwater Technology stock. 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:

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. Case in point: We've spotted 4 warning signs for Beijing Originwater Technology you should be aware of, and 1 of them is potentially serious.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.