Wisdom Wealth Resources Investment Holding Group Limited's (HKG:7): Top Key Executive Chi Ming Hui is the most bullish insider, and their stock value gained 55% last week

Key Insights

• Significant insider control over Wisdom Wealth Resources Investment Holding Group implies vested interests in company growth
• Chi Ming Hui owns 58% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Wisdom Wealth Resources Investment Holding Group Limited (HKG:7) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 58% ownership. 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 HK$296m last week.

Let's delve deeper into each type of owner of Wisdom Wealth Resources Investment Holding Group, beginning with the chart below.

View our latest analysis for Wisdom Wealth Resources Investment Holding Group

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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Wisdom Wealth Resources Investment Holding Group's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

We note that hedge funds don't have a meaningful investment in Wisdom Wealth Resources Investment Holding Group. 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. Hong Kong Finance Equity Management Limited is the second largest shareholder, holding 9.1%.

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 Wisdom Wealth Resources Investment Holding Group

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

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$836m, that means they have HK$484m worth of shares. 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 33% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 9.1%, of the company's shares. 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 Wisdom Wealth Resources Investment Holding Group better, we need to consider many other factors. For instance, we've identified 4 warning signs for Wisdom Wealth Resources Investment Holding Group (2 are a bit unpleasant) that you should be aware of.

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.