Wisdom Marine Lines Co., Limited (Cayman)'s (TWSE:2637) most bullish insider, CEO Chun-Sheng Lan must be pleased with the recent 9.1% gain

Key Insights

• Significant insider control over Wisdom Marine Lines Limited (Cayman) implies vested interests in company growth
• 53% of the business is held by the top 5 shareholders
• Institutions own 20% of Wisdom Marine Lines Limited (Cayman)

A look at the shareholders of Wisdom Marine Lines Co., Limited (Cayman) (TWSE:2637) can tell us which group is most powerful. The group holding the most number of shares in the company, around 27% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit NT$51b market cap following a 9.1% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Wisdom Marine Lines Limited (Cayman).

See our latest analysis for Wisdom Marine Lines Limited (Cayman)

What Does The Institutional Ownership Tell Us About Wisdom Marine Lines Limited (Cayman)?

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.

Wisdom Marine Lines Limited (Cayman) already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Wisdom Marine Lines Limited (Cayman), (below). Of course, keep in mind that there are other factors to consider, too.

Wisdom Marine Lines Limited (Cayman) is not owned by hedge funds. With a 27% stake, CEO Chun-Sheng Lan is the largest shareholder. For context, the second largest shareholder holds about 9.1% of the shares outstanding, followed by an ownership of 7.0% by the third-largest shareholder.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 Wisdom Marine Lines Limited (Cayman)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 a reasonable proportion of Wisdom Marine Lines Co., Limited (Cayman). It has a market capitalization of just NT$51b, and insiders have NT$14b worth of shares in their own names. That's quite significant. 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, who are usually individual investors, hold a 26% stake in Wisdom Marine Lines Limited (Cayman). 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

Our data indicates that Private Companies hold 26%, of the company's shares. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Wisdom Marine Lines Limited (Cayman) has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.