Stock Analysis

Shenzhen Dynanonic Co., Ltd's (SZSE:300769) stock price dropped 4.1% last week; retail investors would not be happy

SZSE:300769
Source: Shutterstock

Key Insights

  • Shenzhen Dynanonic's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • The top 25 shareholders own 48% of the company
  • 31% of Shenzhen Dynanonic is held by insiders

If you want to know who really controls Shenzhen Dynanonic Co., Ltd (SZSE:300769), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 49% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 4.1% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 31% stock also took a hit.

In the chart below, we zoom in on the different ownership groups of Shenzhen Dynanonic.

See our latest analysis for Shenzhen Dynanonic

ownership-breakdown
SZSE:300769 Ownership Breakdown December 30th 2024

What Does The Institutional Ownership Tell Us About Shenzhen Dynanonic?

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.

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

earnings-and-revenue-growth
SZSE:300769 Earnings and Revenue Growth December 30th 2024

Hedge funds don't have many shares in Shenzhen Dynanonic. Looking at our data, we can see that the largest shareholder is the CEO Lingyong Kong with 13% of shares outstanding. Xuewen Ji is the second largest shareholder owning 9.0% of common stock, and Dongdong Qin holds about 5.1% of the company stock.

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 Shenzhen Dynanonic

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own a reasonable proportion of Shenzhen Dynanonic Co., Ltd. It has a market capitalization of just CN¥11b, and insiders have CN¥3.4b 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, who are usually individual investors, hold a 49% stake in Shenzhen Dynanonic. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

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. Take risks for example - Shenzhen Dynanonic has 1 warning sign we think you should be aware of.

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.