Individual investors invested in Wuhan Citms Technology CO.,LTD. (SHSE:688038) up 20% last week, insiders too were rewarded

Key Insights

• The considerable ownership by individual investors in Wuhan Citms TechnologyLTD indicates that they collectively have a greater say in management and business strategy
• The top 10 shareholders own 51% of the company
• 25% of Wuhan Citms TechnologyLTD is held by insiders

Every investor in Wuhan Citms Technology CO.,LTD. (SHSE:688038) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 40% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 20% increase in the stock price last week, individual investors profited the most, but insiders who own 25% stock also stood to gain from the increase.

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

See our latest analysis for Wuhan Citms TechnologyLTD

What Does The Institutional Ownership Tell Us About Wuhan Citms TechnologyLTD?

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 Wuhan Citms TechnologyLTD 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 Wuhan Citms TechnologyLTD's earnings history below. Of course, the future is what really matters.

Wuhan Citms TechnologyLTD is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Kaixue Wang with 17% of shares outstanding. Wuhan Guanggu Venture Capital Fund Co., Ltd. is the second largest shareholder owning 8.6% of common stock, and Jianfeng Wang holds about 7.7% of the company stock. Jianfeng Wang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

We did some more digging and found that 10 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Wuhan Citms TechnologyLTD

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.

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.

Our information suggests that insiders maintain a significant holding in Wuhan Citms Technology CO.,LTD.. Insiders have a CN¥268m stake in this CN¥1.1b 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

With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Wuhan Citms TechnologyLTD. 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

With a stake of 8.6%, private equity firms could influence the Wuhan Citms TechnologyLTD 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

We can see that Private Companies own 16%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Wuhan Citms TechnologyLTD has 2 warning signs we think you should be aware of.

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.