Recent uptick might appease Guangdong Wenke Green Technology Corp.,Ltd. (SZSE:002775) institutional owners after losing 8.3% over the past year

Key Insights

• Significantly high institutional ownership implies Guangdong Wenke Green TechnologyLtd's stock price is sensitive to their trading actions
• 52% of the business is held by the top 2 shareholders
• 17% of Guangdong Wenke Green TechnologyLtd is held by insiders

A look at the shareholders of Guangdong Wenke Green Technology Corp.,Ltd. (SZSE:002775) can tell us which group is most powerful. The group holding the most number of shares in the company, around 41% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutional investors would appreciate the 11% increase in share price last week, given their one-year losses have totalled a disappointing 8.3%.

In the chart below, we zoom in on the different ownership groups of Guangdong Wenke Green TechnologyLtd.

View our latest analysis for Guangdong Wenke Green TechnologyLtd

What Does The Institutional Ownership Tell Us About Guangdong Wenke Green TechnologyLtd?

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 Guangdong Wenke Green TechnologyLtd 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 Guangdong Wenke Green TechnologyLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Guangdong Wenke Green TechnologyLtd is not owned by hedge funds. Foshan Construction Development Group Co.,Ltd. is currently the company's largest shareholder with 38% of shares outstanding. In comparison, the second and third largest shareholders hold about 14% and 3.2% of the stock. Cong Wen Li, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Guangdong Wenke Green TechnologyLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own a reasonable proportion of Guangdong Wenke Green Technology Corp.,Ltd.. Insiders own CN¥372m worth of shares in the CN¥2.2b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Guangdong Wenke Green TechnologyLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 6.4%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Guangdong Wenke Green TechnologyLtd is showing 3 warning signs in our investment analysis , and 2 of those don't sit too well with us...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.