WuXi Xinje Electric Co.,Ltd.'s (SHSE:603416) CEO Xin Li is the most upbeat insider, and their holdings increased by 9.3% last week

Key Insights

• Insiders appear to have a vested interest in WuXi Xinje ElectricLtd's growth, as seen by their sizeable ownership
• A total of 4 investors have a majority stake in the company with 57% ownership
• Institutions own 25% of WuXi Xinje ElectricLtd

If you want to know who really controls WuXi Xinje Electric Co.,Ltd. (SHSE:603416), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 62% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit CN¥5.4b market cap following a 9.3% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about WuXi Xinje ElectricLtd.

View our latest analysis for WuXi Xinje ElectricLtd

What Does The Institutional Ownership Tell Us About WuXi Xinje ElectricLtd?

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 Xinje ElectricLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Xinje ElectricLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in WuXi Xinje ElectricLtd. The company's CEO Xin Li is the largest shareholder with 23% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 11% of the stock.

Our research also brought to light the fact that roughly 57% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of WuXi Xinje ElectricLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 the majority of WuXi Xinje Electric Co.,Ltd.. This means they can collectively make decisions for the company. That means they own CN¥3.4b worth of shares in the CN¥5.4b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 13% 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand WuXi Xinje ElectricLtd better, we need to consider many other factors. For example, we've discovered 1 warning sign for WuXi Xinje ElectricLtd that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.