Wuhan Jingce Electronic Group Co.,Ltd's (SZSE:300567) most bullish insider, CEO Qian Peng must be pleased with the recent 3.7% gain

Key Insights

• Insiders appear to have a vested interest in Wuhan Jingce Electronic GroupLtd's growth, as seen by their sizeable ownership
• A total of 11 investors have a majority stake in the company with 51% ownership
• Institutional ownership in Wuhan Jingce Electronic GroupLtd is 26%

A look at the shareholders of Wuhan Jingce Electronic Group Co.,Ltd (SZSE:300567) can tell us which group is most powerful. The group holding the most number of shares in the company, around 37% to be precise, is individual insiders. 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 3.7% gain.

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

See our latest analysis for Wuhan Jingce Electronic GroupLtd

What Does The Institutional Ownership Tell Us About Wuhan Jingce Electronic GroupLtd?

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.

Wuhan Jingce Electronic GroupLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Wuhan Jingce Electronic GroupLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Wuhan Jingce Electronic GroupLtd. Looking at our data, we can see that the largest shareholder is the CEO Qian Peng with 26% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.2% and 2.6% of the stock.

After doing some more digging, we found that the top 11 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Wuhan Jingce Electronic GroupLtd

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 Wuhan Jingce Electronic Group Co.,Ltd. It has a market capitalization of just CN¥20b, and insiders have CN¥7.3b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in Wuhan Jingce Electronic GroupLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 3 warning signs for Wuhan Jingce Electronic GroupLtd (2 make us uncomfortable) 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.