Key Insights

• 37 Interactive Entertainment Network Technology Group's significant insider ownership suggests inherent interests in company's expansion
• 50% of the business is held by the top 18 shareholders
• Institutional ownership in 37 Interactive Entertainment Network Technology Group is 19%

If you want to know who really controls 37 Interactive Entertainment Network Technology Group Co., Ltd. (SZSE:002555), 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 40% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥924m last week.

Let's delve deeper into each type of owner of 37 Interactive Entertainment Network Technology Group, beginning with the chart below.

What Does The Institutional Ownership Tell Us About 37 Interactive Entertainment Network Technology Group?

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.

37 Interactive Entertainment Network Technology Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 37 Interactive Entertainment Network Technology Group's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in 37 Interactive Entertainment Network Technology Group. Looking at our data, we can see that the largest shareholder is Weiwei Li with 15% of shares outstanding. Kai Tian Ceng is the second largest shareholder owning 11% of common stock, and Yuhang Hu holds about 9.2% of the company stock. Yuhang Hu, who is the third-largest shareholder, also happens to hold the title of Vice Chairman. In addition, we found that Zhigao Xu, the CEO has 1.8% of the shares allocated to their name.

A closer look at our ownership figures suggests that the top 18 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of 37 Interactive Entertainment Network Technology 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.

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.

It seems insiders own a significant proportion of 37 Interactive Entertainment Network Technology Group Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥12b stake in this CN¥29b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public-- including retail investors -- own 40% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand 37 Interactive Entertainment Network Technology Group 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 37 Interactive Entertainment Network Technology Group , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com