Individual investors among Wuxi Taiji Industry Limited Corporation's (SHSE:600667) largest stockholders and were hit after last week's 3.4% price drop

Key Insights

• The considerable ownership by individual investors in Wuxi Taiji Industry Limited indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 46% of the company
• Institutions own 11% of Wuxi Taiji Industry Limited

Every investor in Wuxi Taiji Industry Limited Corporation (SHSE:600667) should be aware of the most powerful shareholder groups. With 54% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, individual investors endured the biggest losses as the stock fell by 3.4%.

Let's take a closer look to see what the different types of shareholders can tell us about Wuxi Taiji Industry Limited.

Check out our latest analysis for Wuxi Taiji Industry Limited

What Does The Institutional Ownership Tell Us About Wuxi Taiji Industry Limited?

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.

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

Hedge funds don't have many shares in Wuxi Taiji Industry Limited. Wuxi Industry Development Group Co., Ltd. is currently the largest shareholder, with 30% of shares outstanding. With 4.0% and 3.6% of the shares outstanding respectively, Huaxin Investment Management Co., Ltd. and Wuxi Construction and Development Investment Corporation Limited are the second and third largest shareholders.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Wuxi Taiji Industry Limited

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

Shareholders would probably be interested to learn that insiders own shares in Wuxi Taiji Industry Limited Corporation. The insiders have a meaningful stake worth CN¥167m. Most would see this as a real positive. It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 54% stake in Wuxi Taiji Industry Limited, 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 Equity Ownership

With an ownership of 30%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

It seems that Private Companies own 4.0%, of the Wuxi Taiji Industry Limited stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Wuxi Taiji Industry Limited better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Wuxi Taiji Industry Limited you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.