Senior Key Executive Yonggang Zhang, Wuxi Holyview Microelectronics Co.,Ltd.'s (SHSE:603375) largest shareholder sees value of holdings go down 10% after recent drop

Key Insights

• Significant insider control over Wuxi Holyview MicroelectronicsLtd implies vested interests in company growth
• 57% of the business is held by the top 3 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Wuxi Holyview Microelectronics Co.,Ltd. (SHSE:603375) should be aware of the most powerful shareholder groups. With 38% 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 10%.

Let's delve deeper into each type of owner of Wuxi Holyview MicroelectronicsLtd, beginning with the chart below.

See our latest analysis for Wuxi Holyview MicroelectronicsLtd

What Does The Institutional Ownership Tell Us About Wuxi Holyview MicroelectronicsLtd?

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 Wuxi Holyview MicroelectronicsLtd 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 Wuxi Holyview MicroelectronicsLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Wuxi Holyview MicroelectronicsLtd. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Wuxi Holyview MicroelectronicsLtd's case, its Senior Key Executive, Yonggang Zhang, is the largest shareholder, holding 28% of shares outstanding. For context, the second largest shareholder holds about 20% of the shares outstanding, followed by an ownership of 8.6% by the third-largest shareholder.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Wuxi Holyview MicroelectronicsLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own a reasonable proportion of Wuxi Holyview Microelectronics Co.,Ltd.. Insiders own CN¥1.3b worth of shares in the CN¥3.6b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 20%, private equity firms could influence the Wuxi Holyview MicroelectronicsLtd board. 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

Our data indicates that Private Companies hold 9.8%, of the company's shares. 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 Holyview MicroelectronicsLtd better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Wuxi Holyview MicroelectronicsLtd (of which 1 makes us a bit uncomfortable!) you should know about.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com