Beijing Dabeinong Technology Group Co.,Ltd.'s (SZSE:002385) stock price dropped 3.1% last week; individual investors would not be happy

Key Insights

• Significant control over Beijing Dabeinong Technology GroupLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 39% of the company
• 28% of Beijing Dabeinong Technology GroupLtd is held by insiders

A look at the shareholders of Beijing Dabeinong Technology Group Co.,Ltd. (SZSE:002385) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While insiders, who own 28% shares weren’t spared from last week’s CN¥617m market cap drop, individual investors as a group suffered the maximum losses

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

See our latest analysis for Beijing Dabeinong Technology GroupLtd

What Does The Institutional Ownership Tell Us About Beijing Dabeinong Technology GroupLtd?

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.

As you can see, institutional investors have a fair amount of stake in Beijing Dabeinong Technology GroupLtd. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Beijing Dabeinong Technology GroupLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Beijing Dabeinong Technology GroupLtd. Genhuo Shao is currently the largest shareholder, with 25% of shares outstanding. With 2.3% and 1.3% of the shares outstanding respectively, Wanjia Asset Management Co., Ltd. and Yan Qing Zhao 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.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Beijing Dabeinong Technology GroupLtd

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

It seems insiders own a significant proportion of Beijing Dabeinong Technology Group Co.,Ltd.. It has a market capitalization of just CN¥20b, and insiders have CN¥5.6b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 60% of Beijing Dabeinong Technology GroupLtd shares. 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 Beijing Dabeinong Technology GroupLtd better, we need to consider many other factors. For example, we've discovered 1 warning sign for Beijing Dabeinong Technology GroupLtd that you should be aware of before investing here.

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.