Insiders with their considerable ownership were the key benefactors as Xinjiang Winka Times Department Store Co.,Ltd. (SHSE:603101) touches CN¥4.1b market cap

Key Insights

• Significant insider control over Xinjiang Winka Times Department StoreLtd implies vested interests in company growth
• Jin Pan owns 56% of the company
• 14% of Xinjiang Winka Times Department StoreLtd is held by Institutions

If you want to know who really controls Xinjiang Winka Times Department Store Co.,Ltd. (SHSE:603101), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 60% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥499m last week.

Let's delve deeper into each type of owner of Xinjiang Winka Times Department StoreLtd, beginning with the chart below.

See our latest analysis for Xinjiang Winka Times Department StoreLtd

What Does The Institutional Ownership Tell Us About Xinjiang Winka Times Department StoreLtd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Xinjiang Winka Times Department StoreLtd 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. 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 Xinjiang Winka Times Department StoreLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Xinjiang Winka Times Department StoreLtd. The company's largest shareholder is Jin Pan, with ownership of 56%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Yiyi Pan is the second largest shareholder owning 4.1% of common stock, and Galaxy Jinhui Securities Asset Management Corporation Limited holds about 4.0% of the company stock.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Xinjiang Winka Times Department StoreLtd

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.

It seems that insiders own more than half the Xinjiang Winka Times Department Store Co.,Ltd. stock. This gives them a lot of power. That means they own CN¥2.5b worth of shares in the CN¥4.1b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. 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 25% stake in Xinjiang Winka Times Department StoreLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for Xinjiang Winka Times Department StoreLtd you should be aware of, and 1 of them can't be ignored.

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.