Institutional investors control 30% of Biocytogen Pharmaceuticals (Beijing) Co., Ltd. (HKG:2315) and were rewarded last week after stock increased 7.0%

Key Insights

• Given the large stake in the stock by institutions, Biocytogen Pharmaceuticals (Beijing)'s stock price might be vulnerable to their trading decisions
• A total of 6 investors have a majority stake in the company with 52% ownership
• 14% of Biocytogen Pharmaceuticals (Beijing) is held by insiders

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A look at the shareholders of Biocytogen Pharmaceuticals (Beijing) Co., Ltd. (HKG:2315) can tell us which group is most powerful. The group holding the most number of shares in the company, around 30% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, institutional investors ended up benefitting the most after the company hit HK$10b in market cap. The one-year return on investment is currently 276% and last week's gain would have been more than welcomed.

Let's delve deeper into each type of owner of Biocytogen Pharmaceuticals (Beijing), beginning with the chart below.

Check out our latest analysis for Biocytogen Pharmaceuticals (Beijing)

What Does The Institutional Ownership Tell Us About Biocytogen Pharmaceuticals (Beijing)?

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.

As you can see, institutional investors have a fair amount of stake in Biocytogen Pharmaceuticals (Beijing). This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Biocytogen Pharmaceuticals (Beijing)'s earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Biocytogen Pharmaceuticals (Beijing). Our data shows that UBS SDIC Fund Management Co., Ltd. is the largest shareholder with 18% of shares outstanding. For context, the second largest shareholder holds about 8.0% of the shares outstanding, followed by an ownership of 7.3% by the third-largest shareholder. Jian Ni, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. Additionally, the company's CEO Yuelei Shen directly holds 6.6% of the total shares outstanding.

We did some more digging and found that 6 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 Biocytogen Pharmaceuticals (Beijing)

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 Biocytogen Pharmaceuticals (Beijing) Co., Ltd.. It is very interesting to see that insiders have a meaningful HK$1.4b stake in this HK$10b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 29% stake in Biocytogen Pharmaceuticals (Beijing). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With an ownership of 14%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

We can see that Private Companies own 12%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Biocytogen Pharmaceuticals (Beijing) better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Biocytogen Pharmaceuticals (Beijing) , and understanding them should be part of your investment process.

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.