Wuxi Paike New Materials Technology Co.,Ltd. (SHSE:605123) adds CN¥462m in market cap and insiders have a 59% stake in that gain

Key Insights

• Wuxi Paike New Materials TechnologyLtd's significant insider ownership suggests inherent interests in company's expansion
• 54% of the business is held by the top 2 shareholders
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

If you want to know who really controls Wuxi Paike New Materials Technology Co.,Ltd. (SHSE:605123), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 59% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit CN¥6.6b market cap following a 7.5% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Wuxi Paike New Materials TechnologyLtd.

Check out our latest analysis for Wuxi Paike New Materials TechnologyLtd

What Does The Institutional Ownership Tell Us About Wuxi Paike New Materials TechnologyLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Wuxi Paike New Materials TechnologyLtd. 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 Wuxi Paike New Materials TechnologyLtd's earnings history below. Of course, the future is what really matters.

Wuxi Paike New Materials TechnologyLtd is not owned by hedge funds. Our data shows that Liping Zong is the largest shareholder with 33% of shares outstanding. With 21% and 5.0% of the shares outstanding respectively, Yufeng Shi and Hongtao Zang are the second and third largest shareholders. Yufeng Shi, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Wuxi Paike New Materials TechnologyLtd

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 most recent data indicates that insiders own the majority of Wuxi Paike New Materials Technology Co.,Ltd.. This means they can collectively make decisions for the company. Given it has a market cap of CN¥6.6b, that means they have CN¥3.9b worth of shares. 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

The general public-- including retail investors -- own 28% stake in the company, and hence can't easily be ignored. 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.

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 example, we've discovered 2 warning signs for Wuxi Paike New Materials TechnologyLtd that you should be aware of before investing here.

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.

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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.