Beijing StarNeto Technology Co., Ltd.'s (SZSE:002829) stock price dropped 8.5% last week; retail investors would not be happy

Key Insights

• The considerable ownership by retail investors in Beijing StarNeto Technology indicates that they collectively have a greater say in management and business strategy
• The top 23 shareholders own 50% of the company
• Insiders own 41% of Beijing StarNeto Technology

Every investor in Beijing StarNeto Technology Co., Ltd. (SZSE:002829) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 50% 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 41% came under pressure after market cap dropped to CN¥4.2b last week,retail investors took the most losses.

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

View our latest analysis for Beijing StarNeto Technology

What Does The Institutional Ownership Tell Us About Beijing StarNeto Technology?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Beijing StarNeto Technology 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. 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 StarNeto 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 StarNeto Technology. Looking at our data, we can see that the largest shareholder is Jia Sheng Chi with 23% of shares outstanding. With 16% and 1.4% of the shares outstanding respectively, Guo Sheng Li and Ye Feng Xu are the second and third largest shareholders. Ye Feng Xu, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 23 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. 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 StarNeto Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Beijing StarNeto Technology Co., Ltd.. Insiders have a CN¥1.7b stake in this CN¥4.2b business. 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, who are usually individual investors, hold a 50% stake in Beijing StarNeto Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Beijing StarNeto Technology is showing 3 warning signs in our investment analysis , and 1 of those can't be ignored...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.