Individual investors among Tong Tong AI Social Group Limited's (HKG:628) largest stockholders and were hit after last week's 16% price drop

Key Insights

• The considerable ownership by individual investors in Tong Tong AI Social Group indicates that they collectively have a greater say in management and business strategy
• 44% of the business is held by the top 3 shareholders
• Insiders own 44% of Tong Tong AI Social Group

Every investor in Tong Tong AI Social Group Limited (HKG:628) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 16% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 44% stock also took a hit.

Let's delve deeper into each type of owner of Tong Tong AI Social Group, beginning with the chart below.

See our latest analysis for Tong Tong AI Social Group

What Does The Lack Of Institutional Ownership Tell Us About Tong Tong AI Social Group?

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 multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Tong Tong AI Social Group, for yourself, below.

Tong Tong AI Social Group is not owned by hedge funds. Our data shows that Juan Du is the largest shareholder with 32% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.5% and 6.1% of the stock.

Our studies suggest that the top 3 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 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Tong Tong AI Social Group

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 most recent data indicates that insiders own a reasonable proportion of Tong Tong AI Social Group Limited. It has a market capitalization of just HK$1.6b, and insiders have HK$704m 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, who are usually individual investors, hold a substantial 56% stake in Tong Tong AI Social Group, suggesting it is a fairly popular stock. 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. To that end, you should be aware of the 1 warning sign we've spotted with Tong Tong AI Social Group .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.