The recent pullback must have dismayed Beijing Asiacom Information Technology Co,.Ltd (SZSE:301085) insiders who own 54% of the company

Key Insights

• Significant insider control over Beijing Asiacom Information Technology Co.Ltd implies vested interests in company growth
• 55% of the business is held by the top 3 shareholders
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

If you want to know who really controls Beijing Asiacom Information Technology Co,.Ltd (SZSE:301085), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 54% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 9.2% decline in share price, insiders suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Beijing Asiacom Information Technology Co.Ltd.

View our latest analysis for Beijing Asiacom Information Technology Co.Ltd

What Does The Lack Of Institutional Ownership Tell Us About Beijing Asiacom Information Technology Co.Ltd?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Beijing Asiacom Information Technology Co.Ltd might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

We note that hedge funds don't have a meaningful investment in Beijing Asiacom Information Technology Co.Ltd. Looking at our data, we can see that the largest shareholder is Jiang Xu with 38% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 5.9%, of the shares outstanding, respectively. Additionally, the company's CEO Guilin Gu directly holds 2.6% of the total shares outstanding.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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 Beijing Asiacom Information Technology Co.Ltd

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 own more than half of Beijing Asiacom Information Technology Co,.Ltd. This gives them effective control of the company. So they have a CN¥2.9b stake in this CN¥5.3b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 37% stake in Beijing Asiacom Information Technology Co.Ltd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 8.3%, of the Beijing Asiacom Information Technology Co.Ltd stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Beijing Asiacom Information Technology Co.Ltd you should know about.

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.