Individual investors account for 45% of 37 Interactive Entertainment Network Technology Group Co., Ltd.'s (SZSE:002555) ownership, while insiders account for 41%

Key Insights

• The considerable ownership by individual investors in 37 Interactive Entertainment Network Technology Group indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 17 shareholders
• Insider ownership in 37 Interactive Entertainment Network Technology Group is 41%

Every investor in 37 Interactive Entertainment Network Technology Group Co., Ltd. (SZSE:002555) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 45% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, individual insiders make up 41% of the company’s shareholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.

Let's take a closer look to see what the different types of shareholders can tell us about 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.

We can see that 37 Interactive Entertainment Network Technology Group does have institutional investors; and they hold a good portion of the company's stock. 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. 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.

We note that hedge funds don't have a meaningful investment in 37 Interactive Entertainment Network Technology Group. Our data shows that Weiwei Li is the largest shareholder with 15% of shares outstanding. With 11% and 9.2% of the shares outstanding respectively, Kai Tian Ceng and Yuhang Hu are the second and third largest shareholders. Yuhang Hu, who is the third-largest shareholder, also happens to hold the title of Vice Chairman. Additionally, the company's CEO Zhigao Xu directly holds 1.8% of the total shares outstanding.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 17 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 37 Interactive Entertainment Network Technology Group

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.

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 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

With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 37 Interactive Entertainment Network Technology Group. 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. 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.