Anhui Wanyi Science and Technology Co.,Ltd.'s (SHSE:688600) most bullish insider is CEO Mu Zang, and their holdings value went up by 12% last week

Key Insights

• Insiders appear to have a vested interest in Anhui Wanyi Science and TechnologyLtd's growth, as seen by their sizeable ownership
• The top 4 shareholders own 52% of the company
• Institutional ownership in Anhui Wanyi Science and TechnologyLtd is 18%

A look at the shareholders of Anhui Wanyi Science and Technology Co.,Ltd. (SHSE:688600) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 48% 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 were the biggest beneficiaries of last week’s 12% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Anhui Wanyi Science and TechnologyLtd.

View our latest analysis for Anhui Wanyi Science and TechnologyLtd

What Does The Institutional Ownership Tell Us About Anhui Wanyi Science and TechnologyLtd?

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 Anhui Wanyi Science and TechnologyLtd 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. 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 Anhui Wanyi Science and TechnologyLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Anhui Wanyi Science and TechnologyLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Mu Zang with 40% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.3% and 3.0%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Wenping Huang is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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 Anhui Wanyi Science and TechnologyLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

Our information suggests that insiders maintain a significant holding in Anhui Wanyi Science and Technology Co.,Ltd.. Insiders have a CN¥785m stake in this CN¥1.6b business. 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 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Anhui Wanyi Science and TechnologyLtd. 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

We can see that Private Companies own 3.8%, of the shares on issue. 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 Anhui Wanyi Science and TechnologyLtd better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with Anhui Wanyi Science and TechnologyLtd .

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.

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