Wuhan Xingtu Xinke Electronics Co.,Ltd.'s (SHSE:688081) most bullish insider is CEO Jiaming Cheng, and their holdings value went up by 11% last week

Key Insights

• Insiders appear to have a vested interest in Wuhan Xingtu Xinke ElectronicsLtd's growth, as seen by their sizeable ownership
• The top 2 shareholders own 51% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Wuhan Xingtu Xinke Electronics Co.,Ltd. (SHSE:688081), then you'll have to look at the makeup of its share registry. With 43% 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¥958m market cap following a 11% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Wuhan Xingtu Xinke ElectronicsLtd.

View our latest analysis for Wuhan Xingtu Xinke ElectronicsLtd

What Does The Institutional Ownership Tell Us About Wuhan Xingtu Xinke ElectronicsLtd?

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 Wuhan Xingtu Xinke ElectronicsLtd. 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. 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 Wuhan Xingtu Xinke ElectronicsLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Wuhan Xingtu Xinke ElectronicsLtd is not owned by hedge funds. With a 40% stake, CEO Jiaming Cheng is the largest shareholder. Wuhan Xingtu Investment Co., Ltd. is the second largest shareholder owning 12% of common stock, and Aimin Chen holds about 3.2% of the company stock. Interestingly, the third-largest shareholder, Aimin Chen is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Wuhan Xingtu Xinke ElectronicsLtd

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. 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.

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 maintain a significant holding in Wuhan Xingtu Xinke Electronics Co.,Ltd.. Insiders own CN¥410m worth of shares in the CN¥958m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. 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 36% stake in Wuhan Xingtu Xinke ElectronicsLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 12%, of the Wuhan Xingtu Xinke ElectronicsLtd stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Wuhan Xingtu Xinke ElectronicsLtd , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com