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Oct 16, 2024

Retail investors invested in Improve Medical Instruments Co., Ltd. (SZSE:300030) copped the brunt of last week's CN¥393m market cap decline - Simply Wall St News

Every investor in Improve Medical Instruments Co., Ltd. (SZSE:300030) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 59% to

Every investor in Improve Medical Instruments Co., Ltd. (SZSE:300030) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 59% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

While insiders who own 21% came under pressure after market cap dropped to CN¥2.1b last week,retail investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Improve Medical Instruments.

See our latest analysis for Improve Medical Instruments

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 Improve Medical Instruments. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Improve Medical Instruments' earnings history below. Of course, the future is what really matters.

Improve Medical Instruments is not owned by hedge funds. The company's CEO Guanhua Deng is the largest shareholder with 16% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 4.9%, of the shares outstanding, respectively.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

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

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 information suggests that insiders maintain a significant holding in Improve Medical Instruments Co., Ltd.. Insiders have a CN¥428m stake in this CN¥2.1b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

The general public, mostly comprising of individual investors, collectively holds 59% of Improve Medical Instruments shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

With an ownership of 11%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

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. Case in point: We've spotted 2 warning signs for Improve Medical Instruments you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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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.

Engages in the provision of relevant technologies, products, and services for clinical laboratory and clinical nursing in China and internationally.

Flawless balance sheet and good value.