PharmaBlock Sciences (Nanjing), Inc.'s (SZSE:300725) market cap dropped CN¥703m last week; Retail investors bore the brunt

Key Insights

• PharmaBlock Sciences (Nanjing)'s significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 21 investors have a majority stake in the company with 50% ownership
• Insider ownership in PharmaBlock Sciences (Nanjing) is 24%

A look at the shareholders of PharmaBlock Sciences (Nanjing), Inc. (SZSE:300725) can tell us which group is most powerful. With 48% 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.

While insiders who own 24% came under pressure after market cap dropped to CN¥7.7b last week,retail investors took the most losses.

Let's delve deeper into each type of owner of PharmaBlock Sciences (Nanjing), beginning with the chart below.

See our latest analysis for PharmaBlock Sciences (Nanjing)

What Does The Institutional Ownership Tell Us About PharmaBlock Sciences (Nanjing)?

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 PharmaBlock Sciences (Nanjing) does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of PharmaBlock Sciences (Nanjing), (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in PharmaBlock Sciences (Nanjing). The company's CEO Minmin Yang is the largest shareholder with 21% of shares outstanding. With 3.9% and 3.2% of the shares outstanding respectively, Zhong Ou Fund Management Co., Ltd and Hongde Fund 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 21 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. 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 PharmaBlock Sciences (Nanjing)

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 PharmaBlock Sciences (Nanjing), Inc.. It has a market capitalization of just CN¥7.7b, and insiders have CN¥1.9b 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

The general public-- including retail investors -- own 48% 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 5.6%, 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. For example, we've discovered 1 warning sign for PharmaBlock Sciences (Nanjing) that you should be aware of before investing here.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.