WG TECH (Jiang Xi) Co., Ltd.'s (SHSE:603773) market cap rose CN¥365m last week; individual investors who hold 39% profited and so did insiders

Key Insights

• The considerable ownership by individual investors in WG TECH (Jiang Xi) indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 8 shareholders
• 35% of WG TECH (Jiang Xi) is held by insiders

A look at the shareholders of WG TECH (Jiang Xi) Co., Ltd. (SHSE:603773) can tell us which group is most powerful. The group holding the most number of shares in the company, around 39% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that benefitted the most from last week’s CN¥365m market cap gain, insiders too had a 35% share in those profits.

Let's take a closer look to see what the different types of shareholders can tell us about WG TECH (Jiang Xi).

See our latest analysis for WG TECH (Jiang Xi)

What Does The Institutional Ownership Tell Us About WG TECH (Jiang Xi)?

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 WG TECH (Jiang Xi) 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of WG TECH (Jiang Xi), (below). Of course, keep in mind that there are other factors to consider, too.

WG TECH (Jiang Xi) is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Weihua Yi with 34% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.4% and 2.8% of the stock.

We did some more digging and found that 8 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 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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of WG TECH (Jiang Xi)

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 information suggests that insiders maintain a significant holding in WG TECH (Jiang Xi) Co., Ltd.. Insiders own CN¥1.8b worth of shares in the CN¥5.0b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over WG TECH (Jiang Xi). This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 4.4%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. For instance, we've identified 1 warning sign for WG TECH (Jiang Xi) that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.