Retail investors account for 53% of Wuxi Taiji Industry Limited Corporation's (SHSE:600667) ownership, while private equity firms account for 30%

Key Insights

• Wuxi Taiji Industry Limited's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 25 shareholders own 47% of the company
• 11% of Wuxi Taiji Industry Limited is held by Institutions

A look at the shareholders of Wuxi Taiji Industry Limited Corporation (SHSE:600667) can tell us which group is most powerful. The group holding the most number of shares in the company, around 53% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, private equity firms make up 30% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of Wuxi Taiji Industry Limited.

View 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 suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Wuxi Taiji Industry Limited, (below). Of course, keep in mind that there are other factors to consider, too.

Wuxi Taiji Industry Limited is not owned by hedge funds. Wuxi Industry Development Group Co., Ltd. is currently the company's largest shareholder with 30% of shares outstanding. Huaxin Investment Management Co., Ltd. is the second largest shareholder owning 4.0% of common stock, and Wuxi Construction and Development Investment Corporation Limited holds about 3.6% of the company stock.

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.

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. 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 company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We can see that insiders own shares in Wuxi Taiji Industry Limited Corporation. This is a big company, so it is good to see this level of alignment. Insiders own CN¥167m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public -- including retail investors -- own 53% of Wuxi Taiji Industry Limited. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Equity Ownership

With a stake of 30%, private equity firms could influence the Wuxi Taiji Industry Limited board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Wuxi Taiji Industry Limited you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.