Shenzhen Noposion Crop Science Co., Ltd.'s (SZSE:002215) last week's 4.2% decline must have disappointed retail investors who have a significant stake

Key Insights

• The considerable ownership by retail investors in Shenzhen Noposion Crop Science indicates that they collectively have a greater say in management and business strategy
• A total of 15 investors have a majority stake in the company with 50% ownership
• Insiders own 28% of Shenzhen Noposion Crop Science

A look at the shareholders of Shenzhen Noposion Crop Science Co., Ltd. (SZSE:002215) can tell us which group is most powerful. With 45% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 4.2% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 28% stock also took a hit.

In the chart below, we zoom in on the different ownership groups of Shenzhen Noposion Crop Science.

View our latest analysis for Shenzhen Noposion Crop Science

What Does The Institutional Ownership Tell Us About Shenzhen Noposion Crop Science?

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 Shenzhen Noposion Crop Science. 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. 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 Shenzhen Noposion Crop Science's earnings history below. Of course, the future is what really matters.

Shenzhen Noposion Crop Science is not owned by hedge funds. Our data shows that Baiqiang Lu is the largest shareholder with 25% of shares outstanding. With 7.3% and 3.0% of the shares outstanding respectively, Shenzhen Noposion Investment Holding Co., Ltd., and China Asset Management Co. Ltd. are the second and third largest shareholders.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 15 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Shenzhen Noposion Crop Science

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 Shenzhen Noposion Crop Science Co., Ltd.. It has a market capitalization of just CN¥8.5b, and insiders have CN¥2.4b worth of shares in their own names. That's quite significant. 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-- including retail investors -- own 45% stake in the company, and hence can't easily be ignored. 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 9.1%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Shenzhen Noposion Crop Science , and understanding them should be part of your investment process.

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.