Individual investors among Capitalonline Data Service Co., Ltd.'s (SZSE:300846) largest stockholders and were hit after last week's 9.5% price drop

Key Insights

• The considerable ownership by individual investors in Capitalonline Data Service indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 46% of the company
• 30% of Capitalonline Data Service is held by insiders

To get a sense of who is truly in control of Capitalonline Data Service Co., Ltd. (SZSE:300846), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 53% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders, who own 30% shares weren’t spared from last week’s CN¥480m market cap drop, individual investors as a group suffered the maximum losses

Let's take a closer look to see what the different types of shareholders can tell us about Capitalonline Data Service.

View our latest analysis for Capitalonline Data Service

What Does The Institutional Ownership Tell Us About Capitalonline Data Service?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Capitalonline Data Service. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Capitalonline Data Service's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Capitalonline Data Service. Ning Qu is currently the largest shareholder, with 24% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.3% and 2.0% of the stock. Yongzhi Zhao, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Capitalonline Data Service

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 most recent data indicates that insiders own a reasonable proportion of Capitalonline Data Service Co., Ltd.. Insiders have a CN¥1.3b stake in this CN¥4.6b business. 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 -- including retail investors -- own 53% of Capitalonline Data Service. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

We can see that Private Companies own 3.9%, of the shares on issue. 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. For instance, we've identified 2 warning signs for Capitalonline Data Service (1 is a bit concerning) that you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.