PharmaBlock Sciences (Nanjing), Inc.'s (SZSE:300725) stock price dropped 6.0% last week; individual investors would not be happy

Key Insights

• The considerable ownership by individual investors in PharmaBlock Sciences (Nanjing) indicates that they collectively have a greater say in management and business strategy
• 42% of the business is held by the top 25 shareholders
• Insiders own 25% of PharmaBlock Sciences (Nanjing)

A look at the shareholders of PharmaBlock Sciences (Nanjing), Inc. (SZSE:300725) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 58% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While insiders who own 25% came under pressure after market cap dropped to CN¥6.7b last week,individual investors took the most losses.

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

View 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.

As you can see, institutional investors have a fair amount of stake in PharmaBlock Sciences (Nanjing). 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 PharmaBlock Sciences (Nanjing)'s earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in PharmaBlock Sciences (Nanjing). Looking at our data, we can see that the largest shareholder is the CEO Minmin Yang with 21% of shares outstanding. Zhong Ou Fund Management Co., Ltd is the second largest shareholder owning 3.9% of common stock, and Quan Zhou holds about 2.9% 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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

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. 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 information suggests that insiders maintain a significant holding in PharmaBlock Sciences (Nanjing), Inc.. It has a market capitalization of just CN¥6.7b, and insiders have CN¥1.7b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 58% stake in PharmaBlock Sciences (Nanjing), suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

It seems that Private Companies own 5.5%, of the PharmaBlock Sciences (Nanjing) stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. Be aware that PharmaBlock Sciences (Nanjing) is showing 2 warning signs in our investment analysis , you should know about...

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.