CEO Xiaowen Quan, WebRAY Tech(Beijing) Co., Ltd.'s (SHSE:688651) largest shareholder sees value of holdings go down 12% after recent drop

Key Insights

• WebRAY Tech(Beijing)'s significant insider ownership suggests inherent interests in company's expansion
• 51% of the business is held by the top 6 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls WebRAY Tech(Beijing) Co., Ltd. (SHSE:688651), then you'll have to look at the makeup of its share registry. With 39% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, insiders endured the biggest losses as the stock fell by 12%.

Let's delve deeper into each type of owner of WebRAY Tech(Beijing), beginning with the chart below.

See our latest analysis for WebRAY Tech(Beijing)

What Does The Institutional Ownership Tell Us About WebRAY Tech(Beijing)?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

WebRAY Tech(Beijing) already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see WebRAY Tech(Beijing)'s historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in WebRAY Tech(Beijing). Looking at our data, we can see that the largest shareholder is the CEO Xiaowen Quan with 25% of shares outstanding. The second and third largest shareholders are Beijing Yuanjiang Xingtu Network Technology Co., Ltd. and Xiaowei Liu, with an equal amount of shares to their name at 8.2%.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of WebRAY Tech(Beijing)

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.

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.

Our information suggests that insiders maintain a significant holding in WebRAY Tech(Beijing) Co., Ltd.. It has a market capitalization of just CN¥2.4b, and insiders have CN¥924m worth of shares in their own names. 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

The general public, who are usually individual investors, hold a 38% stake in WebRAY Tech(Beijing). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 16%, of the shares on issue. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 3 warning signs for WebRAY Tech(Beijing) (1 is potentially serious!) that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.