While institutions invested in Beijing Roborock Technology Co., Ltd. (SHSE:688169) benefited from last week's 4.7% gain, retail investors stood to gain the most

Simply Wall St · 10/19 00:41

Key Insights

  • The considerable ownership by retail investors in Beijing Roborock Technology indicates that they collectively have a greater say in management and business strategy
  • A total of 11 investors have a majority stake in the company with 51% ownership
  • Insiders own 28% of Beijing Roborock Technology

Every investor in Beijing Roborock Technology Co., Ltd. (SHSE:688169) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 31% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Retail investors gained the most after market cap touched CN¥49b last week, while institutions who own 30% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about Beijing Roborock Technology.

View our latest analysis for Beijing Roborock Technology

ownership-breakdown
SHSE:688169 Ownership Breakdown October 19th 2024

What Does The Institutional Ownership Tell Us About Beijing Roborock Technology?

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.

Beijing Roborock Technology 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 Beijing Roborock Technology's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SHSE:688169 Earnings and Revenue Growth October 19th 2024

Hedge funds don't have many shares in Beijing Roborock Technology. The company's CEO Jing Chang is the largest shareholder with 21% of shares outstanding. For context, the second largest shareholder holds about 5.4% of the shares outstanding, followed by an ownership of 5.3% by the third-largest shareholder.

A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 51% 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 Beijing Roborock Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own a reasonable proportion of Beijing Roborock Technology Co., Ltd.. Insiders own CN¥14b worth of shares in the CN¥49b company. That's quite meaningful. 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

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Beijing Roborock Technology. 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.

Private Equity Ownership

Private equity firms hold a 5.4% stake in Beijing Roborock Technology. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

Our data indicates that Private Companies hold 4.6%, 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:

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 Beijing Roborock Technology 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.