Individual investors among Wuhan Hiteck Biological Pharma Co.,Ltd's (SZSE:300683) largest shareholders, saw gain in holdings value after stock jumped 10% last week

Key Insights

• The considerable ownership by individual investors in Wuhan Hiteck Biological PharmaLtd indicates that they collectively have a greater say in management and business strategy
• A total of 22 investors have a majority stake in the company with 47% ownership
• Insider ownership in Wuhan Hiteck Biological PharmaLtd is 11%

A look at the shareholders of Wuhan Hiteck Biological Pharma Co.,Ltd (SZSE:300683) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 53% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, individual investors collectively scored the highest last week as the company hit CN¥3.3b market cap following a 10% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Wuhan Hiteck Biological PharmaLtd.

Check out our latest analysis for Wuhan Hiteck Biological PharmaLtd

What Does The Institutional Ownership Tell Us About Wuhan Hiteck Biological PharmaLtd?

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.

Less than 5% of Wuhan Hiteck Biological PharmaLtd is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Wuhan Hiteck Biological PharmaLtd. The company's largest shareholder is Wuhan Sanjiangyuan Investment Development Co., Ltd., with ownership of 19%. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 8.4% by the third-largest shareholder. Ya Chen, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

On studying our ownership data, we found that 22 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 Hiteck Biological PharmaLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Hiteck Biological Pharma Co.,Ltd. Insiders have a CN¥369m stake in this CN¥3.3b business. 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

The general public, who are usually individual investors, hold a substantial 53% stake in Wuhan Hiteck Biological PharmaLtd, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

We can see that Private Companies own 34%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. Be aware that Wuhan Hiteck Biological PharmaLtd is showing 2 warning signs in our investment analysis , you should know about...

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.