Institutions along with individual investors who hold considerable shares inEyebright Medical Technology (Beijing) Co., Ltd. (SHSE:688050) come under pressure; lose 4.1% of holdings value

Key Insights

• The considerable ownership by individual investors in Eyebright Medical Technology (Beijing) indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 14 shareholders
• Insiders own 22% of Eyebright Medical Technology (Beijing)

A look at the shareholders of Eyebright Medical Technology (Beijing) Co., Ltd. (SHSE:688050) can tell us which group is most powerful. The group holding the most number of shares in the company, around 35% 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).

While institutions who own 32% came under pressure after market cap dropped to CN¥17b last week,individual investors took the most losses.

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

See our latest analysis for Eyebright Medical Technology (Beijing)

What Does The Institutional Ownership Tell Us About Eyebright Medical Technology (Beijing)?

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.

Eyebright Medical Technology (Beijing) already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Eyebright Medical Technology (Beijing), (below). Of course, keep in mind that there are other factors to consider, too.

Eyebright Medical Technology (Beijing) is not owned by hedge funds. With a 13% stake, CEO Jiangbing Xie is the largest shareholder. With 8.6% and 5.8% of the shares outstanding respectively, Lipin Mao and Beijing Bojiang Hechuang Technology Co., Ltd. are the second and third largest shareholders.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 14 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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

Insider Ownership Of Eyebright Medical Technology (Beijing)

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.

Our information suggests that insiders maintain a significant holding in Eyebright Medical Technology (Beijing) Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥3.7b stake in this CN¥17b business. 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 35% stake in Eyebright Medical Technology (Beijing). 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 11%, of the company's shares. 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.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.