Key Insights

• Insiders appear to have a vested interest in 37 Interactive Entertainment Network Technology Group's growth, as seen by their sizeable ownership
• The top 20 shareholders own 50% of the company
• Institutions own 22% of 37 Interactive Entertainment Network Technology Group

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 40% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit CN¥42b market cap following a 4.6% gain in the stock.

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

View our latest analysis for 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.

37 Interactive Entertainment Network Technology Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 37 Interactive Entertainment Network Technology Group, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment 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. With 11% and 9.1% of the shares outstanding respectively, Kai Tian Ceng and Yuhang Hu are the second and third largest shareholders. Yuhang Hu, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 20 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

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.

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 37 Interactive Entertainment Network Technology Group Co., Ltd.. Insiders own CN¥16b worth of shares in the CN¥42b 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

The general public, who are usually individual investors, hold a 37% stake in 37 Interactive Entertainment Network Technology Group. 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:

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. For instance, we've identified 2 warning signs for 37 Interactive Entertainment Network Technology Group that you should be aware of.

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.