Retail investors invested in 37 Interactive Entertainment Network Technology Group Co., Ltd. (SZSE:002555) up 10% last week, insiders too were rewarded

Key Insights

• The considerable ownership by retail investors in 37 Interactive Entertainment Network Technology Group indicates that they collectively have a greater say in management and business strategy
• A total of 18 investors have a majority stake in the company with 51% ownership
• Insider ownership in 37 Interactive Entertainment Network Technology Group is 40%

Every investor in 37 Interactive Entertainment Network Technology Group Co., Ltd. (SZSE:002555) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While retail investors were the group that benefitted the most from last week’s CN¥3.6b market cap gain, insiders too had a 40% share in those profits.

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.

37 Interactive Entertainment Network Technology Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 37 Interactive Entertainment Network Technology Group's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in 37 Interactive Entertainment Network Technology Group. Looking at our data, we can see that the largest shareholder is Weiwei Li with 15% of shares outstanding. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 9.2% by the third-largest shareholder. Yuhang Hu, who is the third-largest shareholder, also happens to hold the title of Vice Chairman. In addition, we found that Zhigao Xu, the CEO has 1.8% of the shares allocated to their name.

After doing some more digging, we found that the top 18 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

It seems insiders own a significant proportion of 37 Interactive Entertainment Network Technology Group Co., Ltd.. It has a market capitalization of just CN¥39b, and insiders have CN¥16b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 42% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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 learn about the 2 warning signs we've spotted with 37 Interactive Entertainment Network Technology Group (including 1 which doesn't sit too well with us) .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.