Recent uptick might appease VeriSilicon Microelectronics (Shanghai) Co., Ltd. (SHSE:688521) institutional owners after losing 64% over the past year

Key Insights

• Institutions' substantial holdings in VeriSilicon Microelectronics (Shanghai) implies that they have significant influence over the company's share price
• A total of 7 investors have a majority stake in the company with 51% ownership
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls VeriSilicon Microelectronics (Shanghai) Co., Ltd. (SHSE:688521), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 32% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutional investors would probably welcome last week's 17% increase in the share price after a year of 64% losses as a sign that returns may to begin trending higher.

Let's take a closer look to see what the different types of shareholders can tell us about VeriSilicon Microelectronics (Shanghai).

See our latest analysis for VeriSilicon Microelectronics (Shanghai)

What Does The Institutional Ownership Tell Us About VeriSilicon Microelectronics (Shanghai)?

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.

We can see that VeriSilicon Microelectronics (Shanghai) 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. 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 VeriSilicon Microelectronics (Shanghai), (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in VeriSilicon Microelectronics (Shanghai). Our data shows that VeriSilicon Limited is the largest shareholder with 15% of shares outstanding. Shanghai Xingcheng Investment Management Co., Ltd. is the second largest shareholder owning 9.0% of common stock, and Wealth Strategy Holding Ltd holds about 7.8% of the company stock. Furthermore, CEO Wei-Ming Dai is the owner of 1.7% of the company's shares.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of VeriSilicon Microelectronics (Shanghai)

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. 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.

Shareholders would probably be interested to learn that insiders own shares in VeriSilicon Microelectronics (Shanghai) Co., Ltd.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around CN¥413m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in VeriSilicon Microelectronics (Shanghai). While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Equity Ownership

Private equity firms hold a 16% stake in VeriSilicon Microelectronics (Shanghai). This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

It seems that Private Companies own 26%, of the VeriSilicon Microelectronics (Shanghai) stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.