The recent 3.7% gain must have brightened Top Key Executive Yin Yee Lee's week, Xinyi Glass Holdings Limited's (HKG:868) most bullish insider

Key Insights

• Significant insider control over Xinyi Glass Holdings implies vested interests in company growth
• The top 3 shareholders own 50% of the company
• Institutional ownership in Xinyi Glass Holdings is 13%

A look at the shareholders of Xinyi Glass Holdings Limited (HKG:868) can tell us which group is most powerful. With 61% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit HK$37b market cap following a 3.7% gain in the stock.

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

View our latest analysis for Xinyi Glass Holdings

What Does The Institutional Ownership Tell Us About Xinyi Glass Holdings?

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

We can see that Xinyi Glass Holdings does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Xinyi Glass Holdings' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Xinyi Glass Holdings. Our data suggests that Yin Yee Lee, who is also the company's Top Key Executive, holds the most number of shares at 30%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. For context, the second largest shareholder holds about 12% of the shares outstanding, followed by an ownership of 8.2% by the third-largest shareholder. Note that two of the top three shareholders are also Chief Executive Officer and Vice Chairman, respectively, once again pointing to significant ownership by company insiders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Xinyi Glass Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

It seems that insiders own more than half the Xinyi Glass Holdings Limited stock. This gives them a lot of power. That means insiders have a very meaningful HK$23b stake in this HK$37b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Xinyi Glass Holdings. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Xinyi Glass Holdings is showing 2 warning signs in our investment analysis , you should know about...

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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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com