37 Interactive Entertainment Network Technology Group Co., Ltd. (SZSE:002555) insiders, who hold 40% of the firm would be disappointed by the recent pullback

Key Insights

• Insiders appear to have a vested interest in 37 Interactive Entertainment Network Technology Group's growth, as seen by their sizeable ownership
• The top 19 shareholders own 51% of the company
• Institutional ownership in 37 Interactive Entertainment Network Technology Group is 20%

If you want to know who really controls 37 Interactive Entertainment Network Technology Group Co., Ltd. (SZSE:002555), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 40% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, insiders endured the biggest losses as the stock fell by 6.4%.

In the chart below, we zoom in on the different ownership groups of 37 Interactive Entertainment Network Technology Group.

View our latest analysis for 37 Interactive Entertainment Network Technology Group

What Does The Institutional Ownership Tell Us About 37 Interactive Entertainment Network Technology Group?

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.

As you can see, institutional investors have a fair amount of stake in 37 Interactive Entertainment Network Technology Group. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 37 Interactive Entertainment Network Technology Group's historic earnings and revenue below, but keep in mind there's always more to the story.

37 Interactive Entertainment Network Technology Group is not owned by hedge funds. Weiwei Li is currently the company's largest shareholder with 15% of shares outstanding. Kai Tian Ceng is the second largest shareholder owning 11% of common stock, and Yuhang Hu holds about 9.2% of the company stock. Yuhang Hu, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

A closer look at our ownership figures suggests that the top 19 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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

Insider Ownership Of 37 Interactive Entertainment Network Technology Group

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of 37 Interactive Entertainment Network Technology Group Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥14b stake in this CN¥35b 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 38% stake in 37 Interactive Entertainment Network Technology Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. To that end, you should be aware of the 1 warning sign we've spotted with 37 Interactive Entertainment Network Technology Group .

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.