Insiders are the top stockholders in Xin Point Holdings Limited (HKG:1571), and the recent 16% drop might have disappointed them

Key Insights

• Insiders appear to have a vested interest in Xin Point Holdings' growth, as seen by their sizeable ownership
• 75% of the company is held by a single shareholder (Xiaoming Ma)
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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If you want to know who really controls Xin Point Holdings Limited (HKG:1571), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 75% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders as a group endured the highest losses after market cap fell by HK$622m.

Let's take a closer look to see what the different types of shareholders can tell us about Xin Point Holdings.

Check out our latest analysis for Xin Point Holdings

What Does The Institutional Ownership Tell Us About Xin Point Holdings?

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.

Institutions have a very small stake in Xin Point Holdings. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

We note that hedge funds don't have a meaningful investment in Xin Point Holdings. Looking at our data, we can see that the largest shareholder is Xiaoming Ma with 75% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 4.7% and 0.1% of the shares outstanding respectively, Bull Capital Partners Limited and Grandeur Peak Global Advisors, LLC are the second and third largest shareholders.

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

Insider Ownership Of Xin Point Holdings

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders own more than half of Xin Point Holdings Limited. This gives them effective control of the company. That means they own HK$2.4b worth of shares in the HK$3.2b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to discover (for free) if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 20% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Xin Point Holdings better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Xin Point Holdings .

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.