Insiders were the key beneficiaries as Wuxi Xinan Technology Co., Ltd.'s (SZSE:301170) market cap rises to CN¥2.1b

Key Insights

• Wuxi Xinan Technology's significant insider ownership suggests inherent interests in company's expansion
• 53% of the company is held by a single shareholder (Zhongliang Li)
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Wuxi Xinan Technology Co., Ltd. (SZSE:301170) should be aware of the most powerful shareholder groups. With 64% stake, individual insiders 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).

As a result, insiders scored the highest last week as the company hit CN¥2.1b market cap following a 13% gain in the stock.

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

View our latest analysis for Wuxi Xinan Technology

What Does The Institutional Ownership Tell Us About Wuxi Xinan Technology?

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 Wuxi Xinan Technology 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. 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 Wuxi Xinan Technology's earnings history below. Of course, the future is what really matters.

Wuxi Xinan Technology is not owned by hedge funds. Our data shows that Zhongliang Li is the largest shareholder with 53% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Mingjie Li is the second largest shareholder owning 8.9% of common stock, and Wuxi Jinkong Qiyuan Investment Management Co., Ltd. holds about 5.0% of the company stock.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Wuxi Xinan Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 information suggests that insiders own more than half of Wuxi Xinan Technology Co., Ltd.. This gives them effective control of the company. So they have a CN¥1.4b stake in this CN¥2.1b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 4.5%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the 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 Wuxi Xinan Technology is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.