Key Insights

• The considerable ownership by private companies in Wuxi Taclink Optoelectronics Technology indicates that they collectively have a greater say in management and business strategy
• A total of 6 investors have a majority stake in the company with 52% ownership
• Insiders own 20% of Wuxi Taclink Optoelectronics Technology

To get a sense of who is truly in control of Wuxi Taclink Optoelectronics Technology Co., Ltd. (SHSE:688205), it is important to understand the ownership structure of the business. With 37% stake, private companies 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).

And last week, private companies endured the biggest losses as the stock fell by 9.6%.

Let's delve deeper into each type of owner of Wuxi Taclink Optoelectronics Technology, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Wuxi Taclink Optoelectronics 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.

Wuxi Taclink Optoelectronics Technology 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 Wuxi Taclink Optoelectronics Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Wuxi Taclink Optoelectronics Technology is not owned by hedge funds. Wuxi Taclink Industrial Investment Partnership Enterprise (Limited Partnership) is currently the company's largest shareholder with 25% of shares outstanding. In comparison, the second and third largest shareholders hold about 13% and 4.2% of the stock. Furthermore, CEO Jianping Qu is the owner of 0.5% of the company's shares.

We did some more digging and found that 6 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Wuxi Taclink Optoelectronics Technology

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.

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.

It seems insiders own a significant proportion of Wuxi Taclink Optoelectronics Technology Co., Ltd.. It has a market capitalization of just CN¥3.9b, and insiders have CN¥768m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Wuxi Taclink Optoelectronics Technology. 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

It seems that Private Companies own 37%, of the Wuxi Taclink Optoelectronics Technology stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Wuxi Taclink Optoelectronics Technology , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.