Key Insights

• Insiders appear to have a vested interest in Shanghai W-Ibeda High Tech.GroupLtd's growth, as seen by their sizeable ownership
• 52% of the business is held by the top 6 shareholders
• Institutions own 19% of Shanghai W-Ibeda High Tech.GroupLtd

To get a sense of who is truly in control of Shanghai W-Ibeda High Tech.Group Co.,Ltd. (SHSE:688071), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 50% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, insiders endured the biggest losses as the stock fell by 18%.

In the chart below, we zoom in on the different ownership groups of Shanghai W-Ibeda High Tech.GroupLtd.

What Does The Institutional Ownership Tell Us About Shanghai W-Ibeda High Tech.GroupLtd?

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 Shanghai W-Ibeda High Tech.GroupLtd. 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 Shanghai W-Ibeda High Tech.GroupLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Shanghai W-Ibeda High Tech.GroupLtd is not owned by hedge funds. With a 21% stake, CEO Yin Li is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 9.2% and 6.5%, of the shares outstanding, respectively. Interestingly, the third-largest shareholder, Ligang Qin is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Shanghai W-Ibeda High Tech.GroupLtd

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 a reasonable proportion of Shanghai W-Ibeda High Tech.Group Co.,Ltd.. It has a market capitalization of just CN¥1.9b, and insiders have CN¥951m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 29% stake in Shanghai W-Ibeda High Tech.GroupLtd. 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 Shanghai W-Ibeda High Tech.GroupLtd better, we need to consider many other factors. For instance, we've identified 2 warning signs for Shanghai W-Ibeda High Tech.GroupLtd (1 is a bit concerning) that you should be aware of.

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.