Shanghai W-Ibeda High Tech.Group Co.,Ltd.'s (SHSE:688071) CEO Yin Li is the most upbeat insider, and their holdings increased by 11% last week

Key Insights

• Significant insider control over Shanghai W-Ibeda High Tech.GroupLtd implies vested interests in company growth
• The top 6 shareholders own 52% of the company
• Institutions own 19% of Shanghai W-Ibeda High Tech.GroupLtd

A look at the shareholders of Shanghai W-Ibeda High Tech.Group Co.,Ltd. (SHSE:688071) can tell us which group is most powerful. With 50% 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.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥169m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai W-Ibeda High Tech.GroupLtd.

Check out our latest analysis for Shanghai W-Ibeda High Tech.GroupLtd

What Does The Institutional Ownership Tell Us About Shanghai W-Ibeda High Tech.GroupLtd?

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.

As you can see, institutional investors have a fair amount of stake in Shanghai W-Ibeda High Tech.GroupLtd. 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 Shanghai W-Ibeda High Tech.GroupLtd'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 Shanghai W-Ibeda High Tech.GroupLtd. Looking at our data, we can see that the largest shareholder is the CEO Yin Li with 21% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.3% and 6.5% of the stock. Interestingly, the third-largest shareholder, Ligang Qin is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

We did some more digging and found that 6 of the top shareholders account for roughly 52% 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. 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 Shanghai W-Ibeda High Tech.GroupLtd

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Shanghai W-Ibeda High Tech.Group Co.,Ltd.. It has a market capitalization of just CN¥1.7b, and insiders have CN¥842m 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

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shanghai W-Ibeda High Tech.GroupLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

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 2 warning signs for Shanghai W-Ibeda High Tech.GroupLtd (1 shouldn't be ignored) that you should be aware of.

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.

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