Individual investors who hold 54% of Wuhan Fingu Electronic Technology Co., LTD. (SZSE:002194) gained 6.5%, insiders profited as well

Key Insights

• The considerable ownership by individual investors in Wuhan Fingu Electronic Technology indicates that they collectively have a greater say in management and business strategy
• 46% of the business is held by the top 25 shareholders
• 44% of Wuhan Fingu Electronic Technology is held by insiders

If you want to know who really controls Wuhan Fingu Electronic Technology Co., LTD. (SZSE:002194), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 54% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 6.5% increase in the stock price last week, individual investors profited the most, but insiders who own 44% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Wuhan Fingu Electronic Technology, beginning with the chart below.

Check out our latest analysis for Wuhan Fingu Electronic Technology

What Does The Institutional Ownership Tell Us About Wuhan Fingu Electronic Technology?

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.

Institutions have a very small stake in Wuhan Fingu Electronic Technology. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Hedge funds don't have many shares in Wuhan Fingu Electronic Technology. Our data shows that Lili Wang is the largest shareholder with 28% of shares outstanding. Qingnan Meng is the second largest shareholder owning 7.4% of common stock, and Fanbo Meng holds about 5.7% of the company stock. Fanbo Meng, who is the third-largest shareholder, also happens to hold the title of Vice Chairman.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Wuhan Fingu Electronic Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Wuhan Fingu Electronic Technology Co., LTD.. It is very interesting to see that insiders have a meaningful CN¥3.3b stake in this CN¥7.6b business. 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

The general public, mostly comprising of individual investors, collectively holds 54% of Wuhan Fingu Electronic Technology shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Wuhan Fingu Electronic Technology is showing 4 warning signs in our investment analysis , and 2 of those are significant...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.