Key Insights

• The considerable ownership by individual investors in Chengdu B-ray MediaLtd indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 46% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Chengdu B-ray Media Co.,Ltd. (SHSE:600880) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors as a group endured the highest losses last week after market cap fell by CN¥929m.

Let's delve deeper into each type of owner of Chengdu B-ray MediaLtd, beginning with the chart below.

View our latest analysis for Chengdu B-ray MediaLtd

What Does The Institutional Ownership Tell Us About Chengdu B-ray MediaLtd?

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 Chengdu B-ray MediaLtd 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Chengdu B-ray MediaLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Chengdu B-ray MediaLtd is not owned by hedge funds. Chengdu B-Ray Investment Holding (Group) Co., Ltd. is currently the largest shareholder, with 23% of shares outstanding. Chengdu Media Group Co., Ltd. is the second largest shareholder owning 12% of common stock, and Huatai Securities (Shanghai) Asset Management Co., Ltd. holds about 1.9% of the company stock.

Our studies suggest that the top 25 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.

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 some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Chengdu B-ray MediaLtd

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. 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.

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.

We can report that insiders do own shares in Chengdu B-ray Media Co.,Ltd.. As individuals, the insiders collectively own CN¥80m worth of the CN¥6.5b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 54% of Chengdu B-ray MediaLtd shares. 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 Company Ownership

It seems that Private Companies own 37%, of the Chengdu B-ray MediaLtd stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Chengdu B-ray MediaLtd better, we need to consider many other factors. For instance, we've identified 1 warning sign for Chengdu B-ray MediaLtd that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.