Insiders the biggest winners as Warom Technology Incorporated Company's (SHSE:603855) market cap rises to CN¥6.8b

Key Insights

• Significant insider control over Warom Technology implies vested interests in company growth
• A total of 5 investors have a majority stake in the company with 51% ownership
• Institutional ownership in Warom Technology is 18%

Every investor in Warom Technology Incorporated Company (SHSE:603855) should be aware of the most powerful shareholder groups. With 53% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit CN¥6.8b market cap following a 7.3% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Warom Technology.

See our latest analysis for Warom Technology

What Does The Institutional Ownership Tell Us About Warom Technology?

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.

We can see that Warom Technology does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Warom Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Warom Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Zhi Rong Hu with 35% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.5% and 3.5%, of the shares outstanding, respectively. Additionally, the company's CEO Jiang Li directly holds 3.4% of the total shares outstanding.

On looking further, we found that 51% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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

Insider Ownership Of Warom Technology

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

Our information suggests that insiders own more than half of Warom Technology Incorporated Company. This gives them effective control of the company. So they have a CN¥3.6b stake in this CN¥6.8b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Warom Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

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.