Key Insights

• The considerable ownership by individual investors in 37 Interactive Entertainment Network Technology Group indicates that they collectively have a greater say in management and business strategy
• The top 19 shareholders own 50% of the company
• 40% of 37 Interactive Entertainment Network Technology Group is held by insiders

To get a sense of who is truly in control of 37 Interactive Entertainment Network Technology Group Co., Ltd. (SZSE:002555), it is important to understand the ownership structure of the business. With 43% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual insiders on the other hand have a 40% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

In the chart below, we zoom in on the different ownership groups of 37 Interactive Entertainment Network Technology Group.

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

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in 37 Interactive Entertainment Network Technology Group. 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 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. Our data shows that Weiwei Li is the largest shareholder with 15% of shares outstanding. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 9.2% by the third-largest shareholder. Yuhang Hu, who is the third-largest shareholder, also happens to hold the title of Vice Chairman. Additionally, the company's CEO Zhigao Xu directly holds 1.8% of the total shares outstanding.

A closer look at our ownership figures suggests that the top 19 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of 37 Interactive Entertainment Network Technology Group

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.

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.. Insiders own CN¥14b worth of shares in the CN¥36b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 37 Interactive Entertainment Network Technology Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for 37 Interactive Entertainment Network Technology Group that you should be aware of.

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.

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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.