Individual investors among Beijing Compass Technology Development Co., Ltd.'s (SZSE:300803) largest shareholders, saw gain in holdings value after stock jumped 4.1% last week

Key Insights

• The considerable ownership by individual investors in Beijing Compass Technology Development indicates that they collectively have a greater say in management and business strategy
• The top 8 shareholders own 51% of the company
• 14% of Beijing Compass Technology Development is held by Institutions

Every investor in Beijing Compass Technology Development Co., Ltd. (SZSE:300803) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 41% ownership. 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 were the biggest beneficiaries of last week’s 4.1% gain.

Let's delve deeper into each type of owner of Beijing Compass Technology Development, beginning with the chart below.

View our latest analysis for Beijing Compass Technology Development

What Does The Institutional Ownership Tell Us About Beijing Compass Technology Development?

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 Compass Technology Development already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Compass Technology Development's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Beijing Compass Technology Development. The company's largest shareholder is Guangzhou Zhanxin Communication Technology Co., Ltd., with ownership of 41%. In comparison, the second and third largest shareholders hold about 2.3% and 1.9% of the stock.

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.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Beijing Compass Technology Development

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.

We can see that insiders own shares in Beijing Compass Technology Development Co., Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥807m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 41% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Beijing Compass Technology Development. 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

Our data indicates that Private Companies hold 41%, of the company's shares. 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 Compass Technology Development better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Beijing Compass Technology Development you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.