Retail investors among Beijing Bayi Space LCD Technology Co.,Ltd.'s (SHSE:688181) largest stockholders and were hit after last week's 9.6% price drop

Key Insights

• Beijing Bayi Space LCD TechnologyLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 25 investors have a majority stake in the company with 45% ownership
• Insiders own 25% of Beijing Bayi Space LCD TechnologyLtd

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. The group holding the most number of shares in the company, around 54% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 25% came under pressure after market cap dropped to CN¥4.0b last week,retail investors took the most losses.

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

Check out 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.

We can see that Beijing Bayi Space LCD TechnologyLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Bayi Space LCD TechnologyLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Beijing Bayi Space LCD TechnologyLtd is not owned by hedge funds. The company's CEO Lei Zhao is the largest shareholder with 21% of shares outstanding. Beijing Shougang Fund Co., Ltd. is the second largest shareholder owning 3.0% of common stock, and China Universal Asset Management Company Ltd. holds about 2.5% 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.

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 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.

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.

It seems insiders own a significant proportion of Beijing Bayi Space LCD Technology Co.,Ltd.. It has a market capitalization of just CN¥4.0b, and insiders have CN¥995m worth of shares in their own names. 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 54% of Beijing Bayi Space LCD TechnologyLtd shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Beijing Bayi Space LCD TechnologyLtd better, we need to consider many other factors. For instance, we've identified 3 warning signs for Beijing Bayi Space LCD TechnologyLtd (1 shouldn't be ignored) that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.