Wasion Holdings Limited's (HKG:3393) Top Key Executive Wei Ji is the most upbeat insider, and their holdings increased by 6.6% last week

Key Insights

• Significant insider control over Wasion Holdings implies vested interests in company growth
• 54% of the company is held by a single shareholder (Wei Ji)
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

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To get a sense of who is truly in control of Wasion Holdings Limited (HKG:3393), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 55% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by HK$468m last week.

Let's delve deeper into each type of owner of Wasion Holdings, beginning with the chart below.

View our latest analysis for Wasion Holdings

What Does The Institutional Ownership Tell Us About Wasion Holdings?

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.

As you can see, institutional investors have a fair amount of stake in Wasion Holdings. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Wasion Holdings' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Wasion Holdings. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Wasion Holdings' case, its Top Key Executive, Wei Ji, is the largest shareholder, holding 54% of shares outstanding. With 1.9% and 1.3% of the shares outstanding respectively, The Vanguard Group, Inc. and Dimensional Fund Advisors LP are the second and third largest shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Wasion Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Wasion Holdings Limited. This means they can collectively make decisions for the company. That means they own HK$4.1b worth of shares in the HK$7.6b company. That's quite meaningful. 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-- including retail investors -- own 36% 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Wasion Holdings better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Wasion Holdings .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.