EmbedWay Technologies (Shanghai) Corporation's (SHSE:603496) 4.6% gain last week benefited both individual investors who own 47% as well as insiders

Key Insights

• Significant control over EmbedWay Technologies (Shanghai) by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 12 shareholders own 51% of the company
• Insiders own 32% of EmbedWay Technologies (Shanghai)

Every investor in EmbedWay Technologies (Shanghai) Corporation (SHSE:603496) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 4.6% increase in the stock price last week, individual investors profited the most, but insiders who own 32% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of EmbedWay Technologies (Shanghai).

See our latest analysis for EmbedWay Technologies (Shanghai)

What Does The Institutional Ownership Tell Us About EmbedWay Technologies (Shanghai)?

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.

We can see that EmbedWay Technologies (Shanghai) does have institutional investors; and they hold a good portion of the company's stock. 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. 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 EmbedWay Technologies (Shanghai)'s earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in EmbedWay Technologies (Shanghai). The company's CEO Zhen Yu Shen is the largest shareholder with 14% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.9% and 5.4% of the stock. Interestingly, the second-largest shareholder, De Yong Hu is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of EmbedWay Technologies (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. 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 most recent data indicates that insiders own a reasonable proportion of EmbedWay Technologies (Shanghai) Corporation. It has a market capitalization of just CN¥8.8b, and insiders have CN¥2.8b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over EmbedWay Technologies (Shanghai). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for EmbedWay Technologies (Shanghai) you should be aware of.

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.