Individual investors among Beijing Kaiwen Education Technology Co., Ltd's (SZSE:002659) largest shareholders, saw gain in holdings value after stock jumped 11% last week

Key Insights

• The considerable ownership by individual investors in Beijing Kaiwen Education Technology indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 44% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Beijing Kaiwen Education Technology Co., Ltd (SZSE:002659) can tell us which group is most powerful. With 56% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors collectively scored the highest last week as the company hit CN¥3.0b market cap following a 11% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Beijing Kaiwen Education Technology.

Check out our latest analysis for Beijing Kaiwen Education Technology

What Does The Institutional Ownership Tell Us About Beijing Kaiwen Education 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 Kaiwen Education Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Kaiwen Education Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Beijing Kaiwen Education Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Beijing Jingmen Xinghai Technology Group Co., Ltd. with 29% of shares outstanding. With 3.4% and 1.5% of the shares outstanding respectively, China Asset Management Co. Ltd. and Keli Motor Group Co., Ltd. are the second and third largest 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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Beijing Kaiwen Education 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. 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 less than 1% of Beijing Kaiwen Education Technology Co., Ltd. But they may have an indirect interest through a corporate structure that we haven't picked up on. It appears that the board holds about CN¥27m worth of stock. This compares to a market capitalization of CN¥3.0b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 56% stake in Beijing Kaiwen Education Technology, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 32%, of the Beijing Kaiwen Education Technology stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Beijing Kaiwen Education Technology you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.