Individual investors invested in Beijing Bayi Space LCD Technology Co.,Ltd. (SHSE:688181) copped the brunt of last week's CN¥313m market cap decline

Key Insights

• The considerable ownership by individual investors in Beijing Bayi Space LCD TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 47% of the company
• Insider ownership in Beijing Bayi Space LCD TechnologyLtd is 25%

If you want to know who really controls Beijing Bayi Space LCD Technology Co.,Ltd. (SHSE:688181), 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 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 25% shares weren’t spared from last week’s CN¥313m market cap drop, individual investors as a group suffered the maximum losses

In the chart below, we zoom in on the different ownership groups of Beijing Bayi Space LCD TechnologyLtd.

See our latest analysis for Beijing Bayi Space LCD TechnologyLtd

What Does The Institutional Ownership Tell Us About Beijing Bayi Space LCD TechnologyLtd?

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.

Beijing Bayi Space LCD TechnologyLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Beijing Bayi Space LCD TechnologyLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Beijing Bayi Space LCD TechnologyLtd is not owned by hedge funds. With a 21% stake, CEO Lei Zhao is the largest shareholder. Beijing Shougang Fund Co., Ltd. is the second largest shareholder owning 4.4% of common stock, and Beijing Jingxi Venture Capital Fund Management Co., Ltd. holds about 3.0% of the company stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Beijing Bayi Space LCD TechnologyLtd

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Beijing Bayi Space LCD Technology Co.,Ltd.. It has a market capitalization of just CN¥2.2b, and insiders have CN¥545m 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 -- including retail investors -- own 53% of Beijing Bayi Space LCD TechnologyLtd. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Beijing Bayi Space LCD TechnologyLtd has 1 warning sign we think you should be aware of.

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.