Intco Medical Technology Co., Ltd.'s (SZSE:300677) market cap dropped CN¥558m last week; Individual investors bore the brunt

Key Insights

• The considerable ownership by individual investors in Intco Medical Technology indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 13 shareholders
• Insider ownership in Intco Medical Technology is 36%

To get a sense of who is truly in control of Intco Medical Technology Co., Ltd. (SZSE:300677), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 44% 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 36% shares weren’t spared from last week’s CN¥558m market cap drop, individual investors as a group suffered the maximum losses

Let's delve deeper into each type of owner of Intco Medical Technology, beginning with the chart below.

See our latest analysis for Intco Medical Technology

What Does The Institutional Ownership Tell Us About Intco Medical Technology?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Intco Medical 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. 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 Intco Medical Technology's earnings history below. Of course, the future is what really matters.

Intco Medical Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Fang Yi Liu with 36% of shares outstanding. For context, the second largest shareholder holds about 2.4% of the shares outstanding, followed by an ownership of 1.6% by the third-largest shareholder.

A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Intco Medical Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Intco Medical Technology Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥6.2b stake in this CN¥17b business. 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-- including retail investors -- own 44% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for Intco Medical Technology that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.