Beijing QingCloud Technology Group Co., Ltd's (SHSE:688316) market cap dropped CN¥226m last week; Individual investors bore the brunt

Key Insights

• The considerable ownership by individual investors in Beijing QingCloud Technology Group indicates that they collectively have a greater say in management and business strategy
• The top 12 shareholders own 51% of the company
• 23% of Beijing QingCloud Technology Group is held by insiders

If you want to know who really controls Beijing QingCloud Technology Group Co., Ltd (SHSE:688316), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 46% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While the holdings of individual investors took a hit after last week’s 14% price drop, insiders with their 23% also suffered.

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

View our latest analysis for Beijing QingCloud Technology Group

What Does The Institutional Ownership Tell Us About Beijing QingCloud 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.

As you can see, institutional investors have a fair amount of stake in Beijing QingCloud Technology Group. 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 Beijing QingCloud Technology Group, (below). Of course, keep in mind that there are other factors to consider, too.

Beijing QingCloud Technology Group is not owned by hedge funds. The company's largest shareholder is Yunsong Huang, with ownership of 14%. In comparison, the second and third largest shareholders hold about 9.4% and 5.5% of the stock. Additionally, the company's CEO Yuan Lin directly holds 2.3% of the total shares outstanding.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Beijing QingCloud Technology Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Beijing QingCloud Technology Group Co., Ltd. Insiders own CN¥332m worth of shares in the CN¥1.4b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 46% stake in Beijing QingCloud Technology Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

With a stake of 15%, private equity firms could influence the Beijing QingCloud Technology Group board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

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. For instance, we've identified 1 warning sign for Beijing QingCloud Technology Group that you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.