WinWay Technology Co., Ltd. (TWSE:6515)'s market capitalization reached NT$27 billion last week, benefiting both retail and institutional investors who own 43%.

key insights

• The significant ownership interest in WinWay Technology by retail investors indicates that they collectively have a greater say in management and business strategy.
• A total of 13 investors hold a majority stake in the company, holding 51% of the ownership.
• 23% of WinWay Technology is owned by insiders

To know who really controls WinWay Technology Co., Ltd. (TWSE:6515), it's important to understand the business' ownership structure. The group that owns the most shares in the company (about 43% to be exact) is retail investors. In other words, this group faces the greatest upside potential (or downside risk).

Retail investors were the biggest beneficiaries of last week's 7.2% price increase, but institutional investors also received a 25% cut.

The chart below zooms in on the different ownership groups for WinWay Technology.

Check out our latest analysis for WinWay Technology.

What does institutional ownership tell us about WinWay technology?

Institutions typically measure a stock against a benchmark when reporting to their own investors, so enthusiasm for a stock often increases once it's included in a major index. We would expect most companies to have some institutions on their register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in WinWay Technology. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can 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 WinWay Technology's past earnings trajectory, (below). Of course, keep in mind that there are other factors to consider as well.

Note that hedge funds don't have a meaningful investment in WinWay Technology. Mark Wang, the company's CEO, is the company's largest shareholder with 14% of the outstanding shares. On the other hand, the second and third largest shareholders hold about 6.8% of the stock and his own 4.1%. Interestingly, the third largest shareholder, JQ Lee, is also a member of the board of directors, indicating strong insider ownership among the company's top shareholders.

If we take a closer look at our ownership figures, we can see that the top 13 shareholders have a combined ownership of 51%, meaning that no single shareholder has a majority.

While researching 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 are a significant number of analysts covering this stock, so it might be useful to know their aggregate forecast for the future.

Insider Ownership of WinWay Technology

The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. The answers of company management to the board of directors and the latter must represent the interests of shareholders. In particular, top-level managers may serve on the board themselves.

I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data shows that insiders own a significant percentage of WinWay Technology Co., Ltd.. Insiders say he has a NT$6.2b stake in this NT$27b business. This could suggest that the founders still own a large number of shares. Click here to see if they are buying or selling.

Open to the public

The general public, including retail investors, own 43% of the company's shares, so they can't be easily ignored. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.

Private company ownership

We can see that Private companies own 9.4% of the shares outstanding. It's hard to draw any conclusions from this fact alone, so it's worth finding out who owns these private companies. Insiders and other parties may have an interest in the stock of a public company through another private company.

Next steps:

I think it would be very interesting to see who exactly owns the company. But to really gain insight, you need to consider other information as well.Case in point: we discovered 2 Warning Signs for WinWay Technology You should know and not one of them should be ignored.

If you want to know what analysts are predicting in terms of future growth, don't miss this free Report on analyst forecasts.

Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the 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 using only unbiased methodologies, and the articles are not intended as financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.