Beijing InHand Networks Technology Co., Ltd.'s (SHSE:688080) market cap rose CN¥792m last week; individual investors who hold 52% profited and so did insiders

Key Insights

• The considerable ownership by individual investors in Beijing InHand Networks Technology indicates that they collectively have a greater say in management and business strategy
• 48% of the business is held by the top 25 shareholders
• Insiders own 39% of Beijing InHand Networks Technology

A look at the shareholders of Beijing InHand Networks Technology Co., Ltd. (SHSE:688080) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 52% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors gained the most after market cap touched CN¥3.4b last week, while insiders who own 39% also benefitted.

Let's delve deeper into each type of owner of Beijing InHand Networks Technology, beginning with the chart below.

Check out our latest analysis for Beijing InHand Networks Technology

What Does The Institutional Ownership Tell Us About Beijing InHand Networks Technology?

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 InHand Networks Technology. 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 Beijing InHand Networks Technology's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Beijing InHand Networks Technology. Ming Li is currently the company's largest shareholder with 20% of shares outstanding. With 7.9% and 4.3% of the shares outstanding respectively, Hongyu Li and Chuanjun Han are the second and third largest shareholders. Two of the top three shareholders happen to be Chief Executive Officer and Member of the Board of Directors, respectively. That is, insiders feature higher up in the heirarchy of the company's top shareholders.

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.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Beijing InHand Networks Technology

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 InHand Networks Technology Co., Ltd.. Insiders own CN¥1.3b worth of shares in the CN¥3.4b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 52% of Beijing InHand Networks Technology shares. 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:

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.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.