Focus Lightings Tech Co., Ltd.'s (SZSE:300708) last week's 7.8% decline must have disappointed retail investors who have a significant stake

Key Insights

• The considerable ownership by retail investors in Focus Lightings Tech indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 42% of the company
• Insiders own 37% of Focus Lightings Tech

A look at the shareholders of Focus Lightings Tech Co., Ltd. (SZSE:300708) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 58% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 7.8% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 37% stock also took a hit.

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

Check out our latest analysis for Focus Lightings Tech

What Does The Institutional Ownership Tell Us About Focus Lightings Tech?

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.

Less than 5% of Focus Lightings Tech is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Focus Lightings Tech is not owned by hedge funds. The company's largest shareholder is Hua Rong Pan, with ownership of 33%. Ying Gai Xu is the second largest shareholder owning 2.9% of common stock, and Shanghai Guotai Junan Securities Asset Management Co., Ltd. holds about 1.6% 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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Focus Lightings Tech

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.

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 information suggests that insiders maintain a significant holding in Focus Lightings Tech Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥2.7b stake in this CN¥7.3b 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 -- including retail investors -- own 58% of Focus Lightings Tech. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Focus Lightings Tech is showing 1 warning sign in our investment analysis , you should know about...

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.