Individual investors among Fujian Fynex Textile Science & Technology Co., Ltd.'s (SHSE:600493) largest stockholders and were hit after last week's 15% price drop

Key Insights

• The considerable ownership by individual investors in Fujian Fynex Textile Science & Technology indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 43% of the company
• 34% of Fujian Fynex Textile Science & Technology is held by insiders

Every investor in Fujian Fynex Textile Science & Technology Co., Ltd. (SHSE:600493) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 34% came under pressure after market cap dropped to CN¥1.2b last week,individual investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Fujian Fynex Textile Science & Technology.

Check out our latest analysis for Fujian Fynex Textile Science & Technology

What Does The Institutional Ownership Tell Us About Fujian Fynex Textile Science & Technology?

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.

As you can see, institutional investors have a fair amount of stake in Fujian Fynex Textile Science & Technology. 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 Fujian Fynex Textile Science & Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Fujian Fynex Textile Science & Technology is not owned by hedge funds. The company's CEO Chengcheng Chen is the largest shareholder with 13% of shares outstanding. With 8.7% and 8.6% of the shares outstanding respectively, Changchun Li and Mingfeng Li are the second and third largest shareholders. Interestingly, the third-largest shareholder, Mingfeng Li is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 Fujian Fynex Textile Science & Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Fujian Fynex Textile Science & Technology Co., Ltd.. It has a market capitalization of just CN¥1.2b, and insiders have CN¥387m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 57% of Fujian Fynex Textile Science & Technology. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Fujian Fynex Textile Science & Technology better, we need to consider many other factors. Take risks for example - Fujian Fynex Textile Science & Technology has 2 warning signs (and 1 which is a bit concerning) 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.