Stock Analysis

The recent 47% gain must have brightened Top Key Executive Chi Ming HuiTim Cook's week, Wisdom Wealth Resources Investment Holding Group Limited's (HKG:7) most bullish insider

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Every investor in Wisdom Wealth Resources Investment Holding Group Limited (HKG:7) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 61% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by HK$275m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Wisdom Wealth Resources Investment Holding Group.

See our latest analysis for Wisdom Wealth Resources Investment Holding Group

SEHK:7 Ownership Breakdown April 20th 2022

What Does The Lack Of Institutional Ownership Tell Us About Wisdom Wealth Resources Investment Holding Group?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Wisdom Wealth Resources Investment Holding Group might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

SEHK:7 Earnings and Revenue Growth April 20th 2022

Wisdom Wealth Resources Investment Holding Group is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Wisdom Wealth Resources Investment Holding Group's case, its Top Key Executive, Chi Ming Hui, is the largest shareholder, holding 58% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.4% and 3.6% of the 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Wisdom Wealth Resources Investment Holding Group

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

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 Wisdom Wealth Resources Investment Holding Group Limited. This means they can collectively make decisions for the company. Given it has a market cap of HK$858m, that means they have HK$525m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 29% stake in Wisdom Wealth Resources Investment Holding Group. 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 9.4%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Wisdom Wealth Resources Investment Holding Group better, we need to consider many other factors. For instance, we've identified 3 warning signs for Wisdom Wealth Resources Investment Holding Group that you should be aware of.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Wisdom Wealth Resources Investment Holding Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About SEHK:7

Wisdom Wealth Resources Investment Holding Group

Wisdom Wealth Resources Investment Holding Group Limited, an investment holding company, engages in the trading, mineral mining, oil and gas, financial, and property development and investment businesses in Hong Kong and the People's Republic of China.

Mediocre balance sheet and overvalued.