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Individual Investors Invested in Tinavi Medical Technologies Co.,Ltd. (SHSE:688277) Copped the Brunt of Last Week's CN¥674m Market Cap Decline

Simply Wall St ·  Mar 28 08:57

Key Insights

  • Significant control over Tinavi Medical TechnologiesLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
  • A total of 25 investors have a majority stake in the company with 47% ownership
  • Insider ownership in Tinavi Medical TechnologiesLtd is 19%

If you want to know who really controls Tinavi Medical Technologies Co.,Ltd. (SHSE:688277), 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 52% to be precise, is individual investors. 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 19% shares weren't spared from last week's CN¥674m market cap drop, individual investors as a group suffered the maximum losses

Let's take a closer look to see what the different types of shareholders can tell us about Tinavi Medical TechnologiesLtd.

ownership-breakdown
SHSE:688277 Ownership Breakdown March 28th 2024

What Does The Institutional Ownership Tell Us About Tinavi Medical TechnologiesLtd?

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 Tinavi Medical TechnologiesLtd 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 Tinavi Medical TechnologiesLtd, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SHSE:688277 Earnings and Revenue Growth March 28th 2024

Hedge funds don't have many shares in Tinavi Medical TechnologiesLtd. The company's largest shareholder is Songgen Zhang, with ownership of 17%. Beijing Zhihui Hechuang Venture Capital Partnership Enterprise (Limited Partnership) is the second largest shareholder owning 7.4% of common stock, and Guotou China Merchant Investment Management Co., Ltd. holds about 5.3% 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Tinavi Medical TechnologiesLtd

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.

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 Tinavi Medical Technologies Co.,Ltd.. Insiders own CN¥771m worth of shares in the CN¥4.2b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 52% stake in Tinavi Medical TechnologiesLtd, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Equity Ownership

With a stake of 11%, private equity firms could influence the Tinavi Medical TechnologiesLtd board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

Our data indicates that Private Companies hold 10%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Tinavi Medical TechnologiesLtd is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

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