Key Insights

• Insiders appear to have a vested interest in Nanjing Wavelength Opto-Electronic Science & TechnologyLtd's growth, as seen by their sizeable ownership
• A total of 2 investors have a majority stake in the company with 57% ownership
• Institutions own 16% of Nanjing Wavelength Opto-Electronic Science & TechnologyLtd

A look at the shareholders of Nanjing Wavelength Opto-Electronic Science & Technology Co.,Ltd. (SZSE:301421) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 16% decline in share price, insiders suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Nanjing Wavelength Opto-Electronic Science & TechnologyLtd.

What Does The Institutional Ownership Tell Us About Nanjing Wavelength Opto-Electronic Science & TechnologyLtd?

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.

We can see that Nanjing Wavelength Opto-Electronic Science & TechnologyLtd does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Nanjing Wavelength Opto-Electronic Science & TechnologyLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Nanjing Wavelength Opto-Electronic Science & TechnologyLtd is not owned by hedge funds. Min Zhu is currently the largest shareholder, with 38% of shares outstanding. For context, the second largest shareholder holds about 19% of the shares outstanding, followed by an ownership of 4.5% by the third-largest shareholder. Yutang Wu, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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

Insider Ownership Of Nanjing Wavelength Opto-Electronic Science & TechnologyLtd

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.

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 Nanjing Wavelength Opto-Electronic Science & Technology Co.,Ltd.. This means they can collectively make decisions for the company. Given it has a market cap of CN¥5.1b, that means they have CN¥2.9b 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

With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Nanjing Wavelength Opto-Electronic Science & TechnologyLtd. 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

It seems that Private Companies own 3.9%, of the Nanjing Wavelength Opto-Electronic Science & TechnologyLtd 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:

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. Be aware that Nanjing Wavelength Opto-Electronic Science & TechnologyLtd is showing 3 warning signs in our investment analysis , and 2 of those are a bit unpleasant...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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