Could the ownership structure of Wunong Net Technology Company Limited (NASDAQ: WNW) tell us anything useful?

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If you want to know who actually controls Wunong Net Technology Company Limited (NASDAQ: WNW), then you will need to examine the makeup of its share register. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.

Wunong Net Technology is not a big company by global standards. It has a market cap of US $ 127 million, which means it wouldn’t get the attention of many institutional investors. In the table below, we can see that the institutions are not entered in the share register. Let’s dig deeper into each type of owner to learn more about Wunong Net technology.

See our latest review for Wunong Net Technology

ownership distribution

What does the lack of institutional ownership tell us about Wunong Net technology?

We don’t tend to see institutional investors owning stocks of very risky, lightly traded, or very small companies. While we sometimes see large companies without registered institutions, this is not particularly common.

There can be various reasons why no institution owns shares in a company. Typically, smaller newly listed companies do not attract much attention from fund managers, as it would not be possible for large fund managers to forge a meaningful position in the company. Alternatively, there could be something about the business that has kept institutional investors out. Wunong Net Technology may not have the kind of past performance institutions are looking for, or maybe they just haven’t studied the business closely.

profit and revenue growth

profit and revenue growth

Wunong Net Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Union International Holdings with 20% of the shares outstanding. With 17% and 9.6% of shares outstanding, respectively, Peijiang Chen and Hanwu Yang are the second and third largest shareholders.

To make our study more interesting, we found that the 4 main shareholders control more than half of the company, which implies that this group has a considerable influence on the decision-making of the company.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. We do not see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.

Insider Ownership of Wunong Net Technology

The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders own more than half of Wunong Net Technology Company Limited. This gives them effective control of the business. That means they own $ 67 million in shares of the $ 127 million company. It is quite significant. Most would say this is a positive, showing strong alignment with shareholders. You can click here to see if these insiders have bought or sold.

General public property

The general public has a 27% stake in Wunong Net Technology. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.

Owned by a private company

Our data indicates that private companies own 20% of the company’s shares. It may be worth pursuing the question further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand Wunong Net technology, there are many other factors that we need to consider. Consider, for example, the ever-present specter of investment risk. We have identified 1 warning sign with Wunong Net Technology and understanding them should be part of your investment process.

Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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