Xiaoxia Wang Hubei Zhongyi Technology Inc.'s (SZSE:301150) CEO is the most bullish insider, and their stock value gained 14%last week

Key Insights

• Insiders appear to have a vested interest in Hubei Zhongyi Technology's growth, as seen by their sizeable ownership
• The largest shareholder of the company is Xiaoxia Wang with a 51% stake
• 15% of Hubei Zhongyi Technology is held by Institutions

A look at the shareholders of Hubei Zhongyi Technology Inc. (SZSE:301150) can tell us which group is most powerful. With 51% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥410m last week.

In the chart below, we zoom in on the different ownership groups of Hubei Zhongyi Technology.

See our latest analysis for Hubei Zhongyi Technology

What Does The Institutional Ownership Tell Us About Hubei Zhongyi Technology?

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 Hubei Zhongyi Technology 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Hubei Zhongyi Technology's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Hubei Zhongyi Technology. With a 51% stake, CEO Xiaoxia Wang is the largest shareholder. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. Yunmeng Zhongyi Technology Investment Center (Limited Partnership) is the second largest shareholder owning 6.3% of common stock, and Hubei New Energy Investment Management Co., Ltd. holds about 3.3% of the company stock.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Hubei Zhongyi Technology

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.

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 most recent data indicates that insiders own the majority of Hubei Zhongyi Technology Inc.. This means they can collectively make decisions for the company. So they have a CN¥1.7b stake in this CN¥3.4b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 25% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 8.5%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Hubei Zhongyi Technology better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Hubei Zhongyi Technology you should be aware of, and 1 of them is significant.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.